Emily is employed as a corporate attorney. For calendar year, 2020, she had AGI of $75,000 and paid the following medical expenses:
Medical insurance premiums $3,700
Doctor and dentist bills for Bob and April (her parents) $6,800
Doctor and dentist bills for Emily $5,200
Prescription medicines for Emily $400
Nonprescription insulin for Emily $350
Bob and April would qualify as Emily's dependents except they file a joint return. Emily's medical insurance policy does not cover them. Emily filed a claim for reimbursement of $2,800 of her own expenses with her insurance company in December 2020 and received the reimbursement in January 2021. What is Emily's maximum allowable medical expense deduction for 2020? Prepare a memo for your firm's tax files which you document your conclusions.
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