!Required information[The following information applies to the questions displayed below.]Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of$50,000 and has incurred the following medical expenses:Dentist chargesPhysician chargesOptical chargesCost of eyeglassesHospital chargesPrescription drugsOver-the-counter drugsMedical insurance premiums (not through an exchange)$ 9001,8005003002,100250450775b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amountof medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.Medical expenses

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SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 1BCRQ

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Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $50,000 and has incurred the following medical expenses: Dentist charges$ 900Physician charges1,800Optical charges500Cost of eyeglasses300Hospital charges2,100Prescription drugs250Over-the-counter drugs450Medical insurance premiums (not through an exchange)775 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $73,800 and has incurred the following medical expenses: Dentist charges $ 1,080 Physician charges 2,140 Optical charges 940 Cost of eyeglasses 725 Hospital charges 3,750 Prescription drugs 375 Over-the-counter drugs 935 Medical insurance premiums (not through an exchange) 1,060 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $69,200 and has incurred the following medical expenses: Dentist charges $ 1,600 Physician charges 2,450 Optical charges 875 Cost of eyeglasses 715 Hospital charges 4,350 Prescription drugs 575 Over-the-counter drugs 820 Medical insurance premiums (not through an exchange) 1,200 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $67,200 and has incurred the following medical expenses: Dentist charges $ 1,200 Physician charges 2,370 Optical charges 565 Cost of eyeglasses 485 Hospital charges 2,700 Prescription drugs 265 Over-the-counter drugs 735 Medical insurance premiums (not through an exchange) 855 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. b. Suppose that Simpson was reimbursed for $350 of the physician's charges and $1,800 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of S 55,200 and has incurred the following medical expenses: Dentist charges $ 1, 480 Physician charges 2, 660 Optical charges 800 Cost of eyeglasses 690 Hospital charges 4, 400 Prescription drugs 550 Over-the-counter drugs 530 Medical Insurance premiums (not through an exchange) 1,235 b. Suppose that Simpson was reimbursed for $310 of the physician's charges and $3,500 for the hospital costs. Calculate the amount of medical expenses that will be Included with Simpson's itemized deductions after any applicable limitations. What are the Medical Expenses? (Show your work)
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $73,400 and has incurred the following medical expenses: Dentist charges $ 1,650 Physician charges 2,300 Optical charges 710 Cost of eyeglasses 400 Hospital charges 2,400 Prescription drugs 430 Over-the-counter drugs 740 Medical insurance premiums (not through an exchange) 1,025 Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Q: How much is Medical expenses
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $50,000 and has incurred the following medical expenses: Dentist charges $ 900 Physician charges 1,800 Optical charges 500 Cost of eyeglasses 300 Hospital charges 2,100 Prescription drugs 250 Over-the-counter drugs 450 Medical insurance premiums (not through an exchange) 775 Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $50,000 and has incurred the following medical expenses: Dentist charges $ 900 Physician charges 1,800 Optical charges 500 Cost of eyeglasses 300 Hospital charges 2,100 Prescription drugs 250 Over-the-counter drugs 450 Medical insurance premiums (not through an exchange) 775 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. medical expenses = ? b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. medical expenses = ?
Assume that services during the year included these three patients: Mrs. Marple, a Medicare patient whose stay at Reston Hospital (one of HCA’s owned hospitals) was for 7 days and who received services which HCA assigned in retail charges (otherwise termed gross revenue) of $25,000. The Medicare DRG payment for her case is expected tobe $10,000; Mr. Chan, a patient with little income or assets and one whom the hospital classifies as a charity patient, stayed in the hospital 4 days and received services with gross charges amounting to $18,000; Mr. Friday stayed in the hospital for 3 days and received services with gross charges amounting to $28,000. Although Mr. Friday had no insurance, he did have a significant source of income and had a sizable amount of assets. Attempts by the hospital to locate Mr. Friday to settle his bill have proven fruitless, and currently he has moved and has left no forwarding address. Assume that at the end of the period the status of the bills for the…
The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a not-for-profit agency:a. Gross patient service revenue totaled $2,200,000. The provision for uncollectible accounts was estimated at $92,000. The allowance for contractual adjustments was increased by $120,000.b. After a conference with representatives of Gold Star Insurance Company, differences between the amounts accrued and subsequent settlements reduced receivables by $60,000.c. A grateful patient donated securities with a cost of $30,000 and a fair value at date of donation of $75,000. The donation was restricted to expenditure for modernization of equipment. The donation was accepted.d. Cash of $45,000 that had been restricted by a donor for the purchase of furniture was used this year. Fall chose to release the donor restriction over the useful life of the asset.e. The board voluntarily transferred $50,000 of cash to add to the resources held for capital improvements.f. Pledges of $60,000…
David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David earned consulting fees of 145,000 in 2018. He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ellas employer but have chosen not to participate in its 401(k) retirement plan. Davids employment-related expenses for 2018 are summarized below. The entertainment involved taking clients to sporting and musical events. The business gifts consisted of 50 gift certificates to a national restaurant. These were sent by David during the Christmas holidays to 18 of his major clients. In addition, David drove his 2016 Ford Expedition 11,000 miles for business and 3,000 for personal use during 2018. He purchased the Expedition on August 15, 2015, and has always used the automatic (standard) mileage method for tax purposes. Parking and tolls relating to business use total 340 in 2018. When the Coles purchased their present residence in April 2015, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost 440,000 (40,000 of which is attributable to the land) and has since appreciated in value. Expenses relating to the residence in 2018 (except for mortgage interest and property taxes; see below) are as follows: In terms of depreciation, the Coles use the MACRS percentage tables applicable to 39-year nonresidential real property. As to depreciable property (e.g., office furniture), David tries to avoid capitalization and uses whatever method provides the fastest write-off for tax purposes. Ella works at a variety of offices as a substitute when a hygienist is ill or on vacation or when one of the clinics is particularly busy (e.g., prior to the beginning of the school year). Besides her transportation, she must provide and maintain her own uniforms. Her expenses for 2018 appear below. Ellas salary for the year is 42,000, and her Form W-2 for the year shows income tax withholdings of 5,000 (Federal) and 1,000 (state) and the proper amount of Social Security and Medicare taxes. Besides die items already mentioned, die Coles had the following receipts during 2018. For several years, the Coles household has included Davids divorced mother, Sarah, who has been claimed as their dependent. In late December 2017, Sarah unexpectedly died of coronary arrest in her sleep. Unknown to Ella and David, Sarah had a life insurance policy and a savings account (with David as the designated beneficiary of each). In 2017, the Coles purchased two ATVs for 14,000. After several near mishaps, they decided that the sport was too dangerous. In 2018, they sold the ATVs to their neighbor. Additional expenditures for 2018 include: In 2018, the Coles made quarterly estimated tax payments of 6,000 (Federal) and 500 (state) for a total of 24,000 (Federal) and 2,000 (state). Part 1Tax Computation Using the appropriate forms and schedules, compute the Coles Federal income tax for 2018. Disregard the alternative minimum tax (AMT) and various education credits since these items are not discussed until later in the text (Chapters 12 and 13). Relevant Social Security numbers are: The Coles do not want to contribute to the Presidential Election Campaign Fund. Also, they want any overpayment of tax refunded to them and not applied toward next years tax liability. David will have a self-employment tax liability; refer to Exhibit 13 9 in Chapter 13 to compute this liability. Suggested software: ProConnect Tax Online. Part 2Follow-Up Advice Ella has always wanted to pursue a career in nursing. To this end, she has earned a substantial number of college credits on a part-time basis. With Sarah no longer requiring home care, Ella believes that she can now complete her degree by attending college on a full-time basis. David would like to know how Ellas plans will affect their income tax position. Specifically, he wants to know: How much Federal income tax they will save if Ella quits her job. Any tax benefits that might be available from the cost of the education. Write a letter to David addressing these concerns. Note: In making your projections, use the information generated in Part 1 and assume that the year remains 2018. Also disregard any consideration of the educational tax credits (i.e., American Opportunity and lifetime learning) since they are not discussed until Chapter 13.

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