Zoe's gross income is $16,960. His medical expenses for the year amounted to $812.35. 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?
812.35 - (16,960 * 0.075) = ?
To find out how much Zoe can deduct for medical expenses, we need to calculate 7 1/2% of his gross income first.
Step 1: Convert 7 1/2% to a decimal.
7 1/2% is the same as 7.5%. To convert a percentage to a decimal, divide it by 100.
7.5% ÷ 100 = 0.075
Step 2: Calculate 7 1/2% of Zoe's gross income.
Multiply Zoe's gross income by 0.075 to find 7 1/2% of his gross income.
$16,960 × 0.075 = $1,272
Step 3: Subtract the calculated amount from Zoe's medical expenses.
To determine the amount he can deduct, subtract the calculated 7 1/2% of his gross income from his total medical expenses.
$812.35 - $1,272 = -$459.65
Since the result is negative, it means Zoe cannot deduct any medical expenses because the calculated amount is higher than his actual medical expenses. Hence, Zoe cannot deduct any medical expenses for the year.