Jay can deduct the amount over 7% of his gross income as medical expenses on his income tax return. If his annual salary is $18500 and his medical expenses one year were $1450 how much could he deduct on his tax return?
18,500 * 0.07 = 1,295
1,450 = 1,295 = ?
To calculate the amount Jay can deduct on his tax return, we need to first calculate 7% of his gross income.
Step 1: Calculate 7% of Jay's gross income
7% of $18,500 can be calculated as:
(7/100) * $18,500 = $1,295
Step 2: Calculate the amount by which Jay's medical expenses exceed 7% of his gross income
Medical expenses exceeding 7% of his gross income can be calculated as:
$1,450 - $1,295 = $155
Therefore, Jay can deduct $155 on his income tax return.
To calculate the amount that Jay can deduct on his tax return for his medical expenses, we need to determine the amount over 7% of his gross income.
Step 1: Calculate 7% of the gross income.
7% of $18,500 = 0.07 * $18,500 = $1,295
Step 2: Calculate the amount over 7% of the gross income.
Medical expenses - 7% of gross income = $1,450 - $1,295 = $155
Therefore, Jay can deduct $155 on his tax return for his medical expenses.