Question

Herman is covered by a cafeteria plan by his employer. His adjusted AGI is $100,000. He paid unreimbursed medical premiums in the amount of $10, 500 and he itemizes deductions. What amount will Herman be able to deduct for his medical insurance premium expenses​

Answer 1

Answer:

Explanation:

Adjusted Gross Income= $100,000

Unreimbursed medical premium= $10,500

Amount deductable for his medical insurance premium should be equal to 7.5% of the AGI.

7.5% of AGI

7.5/100*$100,000

0.075*100,000

=$7,500 medical insurance expenses

Total medical insurance premium deductable is

$10,500-$7,500

=$3000

Answer 2

Your total medical expenses, including premiums, must surpass 7.5 percent of your adjusted gross income to be deductible.

In this case, take his AGI and multiply by 7.5%. subtract that amount from the total medical expenses and you will have the amount that is deductible from his taxes.