In 2007, Wells paid the following expenses:
|
Premiums on an insurance policy against loss of earnings due to sickness or accident |
$3,000 |
|
Physical therapy after spinal surgery |
2,000 |
|
Premium on an insurance policy that covers reimbursement for the cost of prescription drugs |
500 |
In 2007, Wells recovered $1,500 of the $2,000 that she paid for physical therapy through insurance reimbursement from a group medical policy paid for by her employer. Disregarding the adjusted gross income percentage threshold, what amount could be claimed on Wells’ 2007 income tax return for medical expenses?
- $4,000
- $3,500
- $1,000
- $ 500