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The problem in the image involves calculating whether spouse 1 can claim a deduction for medical expenses, based on their adjusted gross income (AGI) and the IRS rule that allows medical expenses exceeding 7.5% of AGI to be deductible.

### Breakdown of the Solution:

#### Part C:

We need to calculate 7.5% of spouse 1's adjusted gross income and determine if the medical expenses exceed this threshold:

- **Adjusted gross income for spouse 1**: $73,000
- **7.5% of adjusted gross income**:  
  \[
  0.075 \times 73,000 = 5,475
  \]

Spouse 1's **medical expenses** are $10,100. We now check if this exceeds $5,475:

- Difference between medical expenses and 7.5% of AGI:  
  \[
  10,100 - 5,475 = 4,625
  \]

Since spouse 1’s medical expenses exceed 7.5% of their adjusted gross income by $4,625, they can claim this amount as a deduction.

#### Conclusion:
- The correct choice is **A**, which states that spouse 1's medical expenses exceed 7.5% of the AGI by $4,625, and spouse 1 can claim a deduction.

Would you like more details on the calculations, or do you have further questions?

Here are five related questions:
1. How do standard deductions compare to itemized deductions in tax filing?
2. What are the medical expenses that qualify for tax deductions?
3. How would the result change if spouse 1 had a different AGI?
4. Can both spouses file separately and still claim medical deductions?
5. How does the marginal tax rate affect the final tax calculation?

**Tip**: When calculating deductions, always check if the total itemized deductions exceed the standard deduction, to determine which option is more beneficial for the taxpayer.

Suppose a married couple has the following individual adjusted gross incomes, total combined deductions, and medical expenses. Calculate 7.5% of the adjusted gross income for spouse 1. Do the medical expenses for spouse 1 exceed this amount? If so, by how much? If the couple file separately, can spouse 1 claim a deduction for medical expenses?

Learn how to calculate whether medical expenses exceed 7.5% of adjusted gross income for tax deductions. This example involves calculating 7.5% of AGI for spouse 1 and determining the deductible medical expenses. Perfect for students or individuals learning about income tax deductions.

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