First, we need to find what 7 1/2% of Zed's gross income is:
7 1/2% = 0.075
0.075 x $21,375 = $1,603.13
This means Zed can only deduct any medical expenses he had that exceed $1,603.13.
Subtracting his medical expenses from this amount:
$924.80 - $1,603.13 = -$678.33
Since the result is negative, Zed cannot deduct any medical expenses.
Answer: b. $0
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?
a. $1,603.13
b. $0
c. $678.33
d. $63.49
1 answer