Question

Zed's gross income is $21,375. His medical expenses for the year
amounted to $924.80. If he can deduct only the amount over 7 1/2% of
his gross income for medical expenses, how much can he deduct for
medical expenses?

Answer 1

First, we need to calculate 7.5% of Zed's gross income:

7.5% of $21,375 = 0.075 * $21,375 = $1,606.25

Next, we need to determine the amount Zed can deduct for medical expenses:

Medical expenses - 7.5% of gross income = $924.80 - $1,606.25 = -$681.45

Since the result is negative, Zed cannot deduct any amount for medical expenses because his medical expenses do not exceed 7.5% of his gross income.