RECOMMENDED!!TAX 310-Assume that medical expenses are only deductible if the
Assume that medical expenses are only deductible if the exceed 10% of an individual’s adjusted gross income. Assume that Joe gets an annual salary of $250,000, he has no other income and he has no deductions that are “above the line”. The only deduction that he has “below the line” are medical expenses. His medical expenses are $50,000. His boss wants to help him out because he had so many medical costs during the year that in addition to his regular salary, she will give him a bonus of $25,000. How much will his taxable income increase due to the $25,000 bonus.
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