Zed can deduct the amount over 7% of his gross income as medical

Question

expenses on his income tax return. If his annual salary is $16,700 and
his medical expenses one year were $1,250, how much could he deduct on
his tax return?
a. $1,081.50
b. $81
c. $87.50
d. $81.50

Answer 1

First, we need to find 7% of Zed's gross income:

7% of $16,700 = 0.07 x 16,700 = $1,169

Next, we need to find the amount by which Zed's medical expenses exceed 7% of his gross income:

$1,250 - $1,169 = $81

Therefore, Zed can deduct $81 on his tax return. The answer is b. $81.