Jon Stenger, a cash-basis taxpayer, had adjusted gross income of $35,000 in 2007. During the year he incurred and paid the following medical expenses:

Drugs and medicines prescribed by doctors

$

300

Health insurance premiums

750

Doctors’ fees

2,550

Eyeglasses

75

$

3,675

Stenger received $900 in 2007 as reimbursement for a portion of the doctors’ fees. If Stenger were to itemize his deductions, what would be his allowable net medical expense deduction?

  1. $0
  2. $ 150
  3. $1,050
  4. $2,475