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Itemized Deduction
Medical and Dental Expenses
| Question | Answer |
|---|---|
| How does one determine the taxable income of taxpayers who itemize deductions? | Adjusted gross income (AGI)minus total itemized deductions and total exemptions |
| Who may itemize | Technically any taxpayer who wants to. However generally it is not advantageous unless total itemized deduction exceed the taxpayer's standard deduction |
| The cost of most legal medical and dental procedures is deductivble, but ther is an exception. What is it | The cost of cosmetic surgery and procedures is not deductible unless the surgery or procedure is necessary to correct or improve a deformity arising from a congenial abnormality, an accident, or a disfiguring disease. |
| What kind of medicines and drugs may be claimed as itemized deductions | Prescription medicines and drugs and insulin |
| Although the cost of nonprescription medicines is not deductible, there is a provision that allows deductiblity. What is it | If a doctor writes a prescription for a nonprescription medicine to treat a specific disease or condition that has been diagnosed by the taxpayer's doctor, nonprescription medicines can be paid for (reimbursed) using pretax money in a section 125 plan |
| Is the cost of a weight-loss program or weight-loss surgery deductible | Yes, if is undertaken to treat a specific diagnosed disease.Obesity is recognized as a disease in and of itself;so if a doctor has diagnosed the patient as obese the cost of weight-loss program or weight-loss surgery would be deductible.Food is not. |
| If a taxpayer drives his own car to the doctor or to buy prescription medicine what expense in addition to the doctor bill or cost of the medicine may be deducted | He may deduct the standard mileage rate for the round trip or his actual expenses for gas.Most taxpayers use the standard mileage rate.(0.19/mile Jan1-June30; 23.5 cent/mile July1-Dec31) |
| A man paid $2,500 to have a hot tub installed in his home because his doctor prescribed it for his back problems. The hot tub increased the value of the home by $2000 and cost $300 to run during the year.How much may be deducted as a medical expense | The $500 over and above the increase in value to the home plus tje operating expenses for a total of $800. |
| Pete Carter is confined to a wheelchair.He paid $8000 to have counters in his kitchen and bathroom lowered so he could use them. What is the tax consequence of Pete's remodeling | The full $800 is deductible as a medical expense because the work was to remodel the home to make it more habitable for a handicapped indiviual. |
| Is the deduction for medical expenses limited | Yes only the excess over 7.5% of AGI can be deducted |
Created by:
dawn2000
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