
Answer:
$800
Explanation:
Fred and Lucy's itemized medical expenses are:
doctor and dentist bills + hospital expenses   $9,200
minus reimbursements                    ($4,400)  Â
unreimbursed expenses                   $4,800
Health insurance premiums                $5,000
Prescribed medicines and drugs            $3,000   Â
Total medical expenses                   $12,800
minus 10% of AGI = 10% x $120,000 Â Â Â Â Â Â Â Â ($12,000) Â Â
Deductible medical expenses                $800
Contribution to qualified Health Savings Accounts are deducted directly from the AGI, and should not be included as medical expenses.