Andy had AGI of $80,000 for 2012. He was injured in a rock climbing accident and paid $5,200 for hospital expenses and $2,800 for doctor bills. Andy also incurred medical expenses of $2,400 for his child, Jodi, who lives with his former wife, Pearl, and is claimed as a dependent by her. In 2013, Andy was reimbursed $2,600 by his insurance company for the medical expenses attributable to the rock climbing accident.
a. Compute Andy’s deduction for medical expenses in 2012.
b. Assume that Andy would have elected to itemize his deductions even if he had no medical expenses in 2012. How much, if any, of the $2,600 reimbursement must be included in gross income in 2013?
c. Assume that Andy’s other itemized deductions in 2012 were $5,300 and that he filed as a head of household. How much of the $2,600 reimbursement must he include in gross income in 2013?