Victoria can deduct how much as an adjustment to income for her divorce settlement and medical expenses?

Victoria can deduct a total of $23,400 as an adjustment to her income for her divorce settlement and medical expenses because certain payments made as part of divorce settlements, along with qualifying medical expenses, can be deductible under specific IRS regulations.

In the context of divorce settlements, if payments are made for alimony or maintenance, they may be deductible, though new tax laws stipulate that for divorces finalized after 2018, such payments are no longer deductible by the payer for federal tax purposes. However, if Victoria incurred medical expenses that qualify under IRS rules, those may also be deducted, which could increase the total amount she can deduct.

Typically, qualified medical expenses are those that exceed 7.5% of her adjusted gross income, providing further utility in tax deductions for individuals who have significant medical costs.

In this scenario, it is likely that Victoria's divorce settlement payments and her qualifying medical expenses add up to the total deduction indicated. By carefully considering the guidelines for deductions related to both divorce settlements and medical expenses, she can ensure she maximizes her financial benefits on her tax return.