Zed can deduct the amount over 7% of his gross income as medical
expenses on his income tax return. If his annual salary is $16,700 and
his medical expenses one year were $1,250, how much could he deduct on
his tax return?
a. $1,081.50
b. $81
c. $87.50
d. $81.50
First, we need to find 7% of Zed's gross income:
7% of $16,700 = 0.07 x 16,700 = $1,169
Next, we need to find the amount by which Zed's medical expenses exceed 7% of his gross income:
$1,250 - $1,169 = $81
Therefore, Zed can deduct $81 on his tax return. The answer is b. $81.
To calculate the deduction amount, we need to find 7% of Zed's gross income, and then subtract that amount from his medical expenses.
Step 1: Calculate 7% of Zed's gross income
7% of Zed's gross income = 7/100 * $16,700
Step 2: Subtract the calculated amount from Zed's medical expenses
Deduction amount = $1,250 - (7/100 * $16,700)
Now, let's calculate the deduction amount:
Step 1: Calculate 7% of Zed's gross income
7/100 * $16,700 = $1,169
Step 2: Subtract the calculated amount from Zed's medical expenses
Deduction amount = $1,250 - $1,169 = $81
Therefore, Zed could deduct $81 on his tax return. The correct answer is b. $81.
To calculate how much Zed can deduct on his tax return, we need to find 7% of his gross income and then subtract that amount from his medical expenses.
First, let's calculate 7% of his gross income:
7% of $16,700 = (7/100) * $16,700 = $1,169
Next, we need to subtract this amount from his medical expenses:
$1,250 - $1,169 = $81
Therefore, Zed can deduct $81 on his tax return.
So the correct answer is b. $81.