Julia Sims has $38,000 of adjusted gross income and $6,080 of medical expenses. She expects to itemize her tax deductions this year. The most recent tax year has a medical expenses floor of 7.5 percent. How much of a tax deduction for medical expenses will Julia be able to take?

To calculate Julia Sims' tax deduction for medical expenses, we need to determine how much of her medical expenses exceed the 7.5% medical expense floor of her adjusted gross income (AGI).

1. **Adjusted Gross Income (AGI):** $38,000
2. **Medical Expenses:** $6,080
3. **Medical Expenses Floor:** 7.5% of AGI

Now, we calculate the 7.5% threshold:

\[
7.5\% \text{ of } 38,000 = 0.075 \times 38,000 = 2,850
\]

Julia can only deduct medical expenses that exceed $2,850. Now, subtract this amount from her total medical expenses:

\[
6,080 - 2,850 = 3,230
\]

Thus, Julia will be able to deduct **$3,230** in medical expenses.

Would you like any further details or have any questions?

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Here are 5 related questions for further exploration:
1. How do different floors for medical deductions affect overall tax liability?
2. What other expenses can be itemized for tax deductions besides medical expenses?
3. What happens if Julia's medical expenses were below the 7.5% threshold?
4. How do tax deduction floors vary based on income levels?
5. Can medical insurance premiums be part of deductible medical expenses?

**Tip:** Always keep track of potential deductible expenses throughout the year to maximize tax deductions when itemizing.

Discover how to calculate the tax deduction for medical expenses exceeding the 7.5% AGI floor. Julia Sims, with $38,000 AGI and $6,080 medical expenses, qualifies for a $3,230 deduction. Learn the step-by-step process, key formulas, and related tax deduction rules. Suitable for high school students and tax preparers.

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