and my total NET income is roughly $38,000? (My husband and I claim our taxes jointly. )
So, again, our total medical payments for this year will be roughly $3,766 and our total NET income will be $38,000.
What is my AGI? Is that my net income?
IS my math right: 7.5 % of 38,000 equals $2,850. I subtract 2,850 from 3766, and I get my total amount that is deductable, which is $916. ???
2007-10-15 04:12:26 · 4 answers · asked by Sylves 3 in Business & Finance ➔ Taxes ➔ United States
Judy, your answer makes me more confused. Would you elaborate a little, or refer me to a source that could explain this better to me?
2007-10-15 06:31:32 · update #1
Well, you are partly right. That would be the amount of your medical costs that you could take as itemized deductions. But unless you have enough other itemized deductions to total more that your standard deduction, $10,700 for a married couple for 2007, you would just take the standard deduction so wouldn't itemize and wouldn't be able to get any tax benefit from the expenses.
Other common itemized deductions are state and local taxes, charitable contributions, and if you own a home, mortgage interest and real estate taxes. There are other deductions, but those are the common ones.
2007-10-15 06:25:02 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
I don't know what you mean by "net income". That is not a term you will find on tax forms. Your AGI is the number on the last line of 1040 page 1.
You have a choice of itemizing deductions on Schedule A, or taking the "Standard Deduction". You should obviously use whichever is higher.
2007-10-15 09:13:24 · answer #2 · answered by r_kav 4 · 0⤊ 0⤋
Sorry, yet those can't be deducted. on account that your husband is eligible to be carried below your plan, those rates do no longer meet the attempt for a self-employed scientific well being coverage deduction. added, there's a pair of ninety 5% probability those rates are paid for using pre-tax money so no tax has been paid on the quantity of the rates before everything. If that's certainly the case, you could no longer even deduct those rates on time table A.
2016-12-29 11:12:56 · answer #3 · answered by ? 3 · 0⤊ 0⤋
That $916 sounds about right. However, there are going to be some major changes in the tax laws this year because it's an election year, so you may get even more.
When you make out your taxes, just follow the prompts and you can't go wrong. AGI is "Adjusted Gross Income"
2007-10-15 04:21:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋