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?
a. $1,272
b. $459.65
c. $0
d. $746.50
First, find 7 1/2% of Zoe's gross income:
7.5% = 0.075
0.075 x 16,960 = 1,272
Zoe can only deduct the amount OVER $1,272 for medical expenses.
Subtract $1,272 from Zoe's medical expenses:
$812.35 - $1,272 = -$459.65
Since this is a negative number, it means Zoe cannot deduct any medical expenses. Therefore, the answer is c. $0.