Jay can deduct the amount over 7% of his gross income as medical
expenses on his income tax return. If his annual salary is $18,500 and
his medical expenses one year were $1,450, how much could he deduct on
his tax return?
$1450 - (0.07)($18,500)
= 1450 - 1295 = $ ____
4367
To calculate Jay's medical expenses deduction on his tax return, we first need to calculate 7% of his gross income:
Step 1: Calculate 7% of Jay's gross income
7% of $18,500 = (7/100) * $18,500 = $1,295
Step 2: Find the amount over 7% of his gross income
Medical expenses - 7% of gross income = $1,450 - $1,295 = $155
Therefore, Jay can deduct $155 on his tax return as medical expenses.