Week 4 Project

Alexis Aguirre Leon

Keiser University

TAX2004G2

10-17-2020

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Medical Expenses

Essentially the tax preparation needs for the case of Denise will rely on the total medical expense deductions. This is because this person has had various expenses towards the medical coverage and hence the tax returns will first consider the total expense in terms of the value that is not supposed to be taxed (Shaw 2013). These deductions will fall under the allowances section in his salary form as directed by the taxing policy for public servants.

DENISE'S MEDICAL EXPENSES DEDUCTION
PARTICULARS	VALUES
Drugs as prescribed by the physician	$1,850
Marijuana as prescribed by the physician	$2,125
Insurance Premium (after tax)	$775
Doctor Fee	$1,450
Contact Lenses	$280
TOTAL ALLOWABLE EXPENSE	$6,480

Basing on the above tabulated figures on the expenses, it is evident that Marijuana has the highest value of $2,125 based on the nature of the substance and the level of addiction by Denise. The above information provides an in-depth understanding of the various rate of returns behave in the company over a specific period of time (Riehle‐Colarusso.et.al.2016). It is evident that the value of the total allowable expense when developing the financial statement in the company helps in the analysis and decision making process concerning the effectiveness of the deduction from the taxable income. Essentially we find that the insurance premium is under the option of financial deductions but termed as “after tax”. Denise has had a balanced expenditure but the most part of his money went on the drugs which were directed by the doctor.

References

Riehle‐Colarusso, T. J., Bergersen, L., Broberg, C. S., Cassell, C. H., Gray, D. T., Grosse, S. D., ... & Krishnaswamy, A. (2016). Databases for congenital heart defect public health studies across the lifespan. Journal of the American Heart Association, 5(11), e004148.

Shaw, N. (2013). U.S. Patent No. 8,606,665. Washington, DC: U.S. Patent and Trademark Office.