1.Any personal expenditures not specifically allowed as itemized deductions by the tax law are nondeductible.
Only those personal expenditures that are allowed by the tax law are deductible as itemized deductions. PTS:1REF:p. 10-2
2.The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer’s filing status.
The election to itemize is appropriate when total itemized deductions exceed the standard deduction based on the taxpayer’s filing status. PTS:1REF:p. 10-2
3.A medical expense does not have to relate to a particular ailment to be deductible.
The definition of medical care is broad enough to cover preventive measures; therefore, the cost of periodic physical and dental exams qualifies even for a taxpayer in good health. PTS:1REF:p. 10-3
4.Erica, Carol’s daughter, has a severe form of autism. Dr. Malone recommends that Carol send Erica to a resident special school for autistic children when she enters first grade. Erica may include the cost of tuition for the special school but cannot include the cost of meals or lodging when computing her medical expense deduction.
Erica may also include the cost of meals and lodging.
5.Mindy paid an appraiser to determine how much a capital improvement made for medical reasons increased the value of her personal residence. The appraisal fee qualifies as a deductible medical expense.
The appraisal fee does not qualify as a medical expense, but it qualifies as a deduction under § 212 (related to the determination of tax liability) as a miscellaneous itemized deduction. PTS:1REF:p. 10-5
6.Upon the recommendation of a physician, Ed has a swimming pool installed at his residence because of a heart condition. If he is allowed to deduct all or part of the cost of the pool, Ed’s increase in utility bills due to the operation of the pool qualifies as a medical expense.
Such expense does qualify as a medical expense.
7.Gerald, a physically handicapped individual, pays $9,000 for the installation of wheelchair ramps, support bars, and railings in his personal residence. These improvements increase the value of his personal residence by $2,000. Only $7,000 of the expenditure qualifies as a medical deduction (subject to the 7.5% floor).
The full $9,000 is included as a medical expense under a special rule applicable to physically handicapped persons. The deduction is subject to the 7.5% floor. PTS:1REF:p. 10-5
8.Chad pays the medical expenses of his son, James. James would qualify as Chad’s dependent except that he earns $6,500 during the year. Chad may not claim James’ medical expenses because he is not a dependent.
Chad may deduct the medical expenses. The gross income test is waived in determining dependency status for medical expense purposes. PTS:1REF:p. 10-5
9.Bill paid $2,500 of medical expenses for his daughter, Marie. Marie is married to John and they file a joint return. Bill can include the $2,500 of expenses when calculating his medical expense deduction.
The joint return test is waived in determining dependency status for medical expense deduction purposes. Bill may include the $2,500 in calculating his medical expenses. PTS:1REF:p. 10-5 | Example 7
10.In 2007, Dena traveled 500 miles for specialized medical treatment that was not available in her hometown. She paid $80 for meals during the trip, $125 for a hotel room on Tuesday night, and $15 in parking fees. She did not keep records of other out-of-pocket costs for transportation. Dena can include $235 in computing her medical expenses.
Dena can deduct $100 (500 miles × 20 cents per mile) for transportation. The 20 cents per mile automatic mileage option for...