High School

Benton is itemizing deductions on his federal income tax return and had $5,600 in medical expenses last year. If his AGI was $55,000, and if medical expenses are deductible to the extent that they exceed 7.5% of a taxpayer's AGI, how much can Benton deduct for medical expenses?

A. $3,705
B. $1,475
C. $4,125
D. $420

Answer :

Benton can deduct B. $1,475 for medical expenses.

To determine how much Benton can deduct for medical expenses, follow these steps:

  1. Calculate 7.5% of Benton's Adjusted Gross Income (AGI).
    0.075 × $55,000 = $4,125
  2. Subtract this amount from Benton's total medical expenses to find the deductible amount.
    $5,600 - $4,125 = $1,475

Therefore, the correct answer is B. $1,475.

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