Question 1

Van pays the following medical expenses this year: • $1,500 for doctor bills for Van's son who is claimed as a dependent by Van's former spouse.
• $300 for Van's eyeglasses.
• $900 for Van's dental work.
• $3,800 for Van's face lift.Van,a newscaster,is worried about the wrinkles around his eyes.
How much can Van include on his return as qualified medical expenses before limitation?

Accepted Answer

Van can include all of the expenses except for the $1,500 for his son's doctor bills, as his son is claimed as a dependent by his former spouse. Therefore, the total amount of qualified medical expenses before limitation is $5,000 ($300 + $900 + $3,800). However, there is a limitation on medical expenses that can be included on a tax return. For 2021, the limitation is expenses exceeding 7.5% of the taxpayer's adjusted gross income (AGI). We don't know Van's AGI, so we can't calculate the limitation.

Question 2

Medical expenses incurred on behalf of children of divorced parents are deductible by the parent who pays the expenses but only if that parent also is entitled to the dependency exemption.

Accepted Answer

False

Question 3

Medical expenses paid on behalf of an individual who could be the taxpayer's dependent except for the gross income or joint return tests are deductible as itemized deductions.

Accepted Answer

Medical expenses paid on behalf of a person who meets all other requirements to be the taxpayer's dependent except for failing the gross income or joint return tests can be deductible as itemized deductions. This includes expenses paid for medical care, dental care, vision care, prescription medications, and other qualified medical expenses.

Question 4

Due to stress on the job,taxpayer Charlie began to experience chest pains.His doctor advised him to take some time off and relax.In order to relax and relieve the pains,he and his spouse went on an ocean cruise.The cost of the cruise to alleviate this medical condition is tax deductible.

Accepted Answer

The cost of a vacation or cruise taken primarily for pleasure purposes is not tax deductible. Medical expenses, including travel expenses for medical care, are tax deductible only if they exceed a certain percentage of the taxpayer's income and meet other qualifying criteria. However, in this scenario, it is not clear whether Charlie's medical expenses meet the necessary criteria for tax deductibility.

Question 5

Jeffrey,a T.V.news anchor,is concerned about the wrinkles around his eyes.Because it is job-related,the cost of a face lift to eliminate these wrinkles is a deductible medical expense.

Accepted Answer

The answer of Jeffrey,a T.V.news anchor,is concerned about the wrinkles...

Question 6

If the principal reason for a taxpayer's presence in an institution is the need and availability of medical care,the entire cost of lodging and meals is considered qualified medical expenditures.

Accepted Answer

According to IRS Publication 502, if the primary reason for a taxpayer's presence in an institution is to receive medical care, then the cost of lodging and meals is considered a qualified medical expense.

Question 7

If a prepayment is a requirement for the receipt of the medical care,the payment is deductible in the year paid rather than the year in which the care is rendered.

Accepted Answer

According to IRS rules, prepayments for medical care (such as paying for a surgery or medical procedure in advance) are generally deductible in the year they are paid, rather than in the year in which the care is actually received. This can be helpful for taxpayers who want to maximize their deductions for a particular tax year.

Question 8

If a medical expense reimbursement is received in a year after a deduction has been taken on a previous year's return,the previous year's return must be amended to eliminate the reimbursed expense.

Accepted Answer

The answer of If a medical expense reimbursement is received...

Question 9

Expenditures for long-term care insurance premiums qualify as a medical expense deduction subject to an annual limit based upon the age of an individual.

Accepted Answer

Long-term care insurance premiums are considered a qualified medical expense that can be deducted from taxes, subject to a limit based on the age of the individual. This deduction applies if the taxpayer itemizes their deductions and their total medical expenses exceed a certain percentage of their adjusted gross income.

Question 10

In 2015 Sela traveled from her home in Flagstaff to San Francisco to seek medical care.Because she was unable to travel alone,her mother accompanied her.Total expenses included:  The total medical expenses deductible before the 10% limitation are

Accepted Answer

The answer of In 2015 Sela traveled from her home...

Question 11

For individuals,all deductible expenses must be classified as deductions for AGI or deductions from AGI.

Accepted Answer

All deductible expenses for individuals must be classified as either deductions for AGI or deductions from AGI on their tax returns. Deductions for AGI are subtracted from gross income to arrive at adjusted gross income (AGI), while deductions from AGI are subtracted from AGI to arrive at taxable income.

Question 12

Expenditures for a weight reduction program are deductible if recommended by a physician to treat a specific medical condition such as hypertension caused by excess weight.

Accepted Answer

According to the IRS, weight loss programs recommended by a physician to treat a specific medical condition are deductible as a medical expense.

Question 13

Capital expenditures for medical care which permanently improve or better the taxpayer's property are deductible to the extent the cost exceeds the increase in fair market value to the property attributable to the capital expenditure.

Accepted Answer

Capital expenditures that improve or better the taxpayer's property for medical care are deductible only to the extent that the cost exceeds the increase in fair market value attributable to the capital expenditure. This means that if the cost of the improvement increases the fair market value of the property by the same amount or more, then the expenditure is not deductible.

Question 14

All of the following are deductible as medical expenses except

Accepted Answer

While payments for vision exams and contact lenses, payments to hospitals for medical diagnosis, and cosmetic surgery necessary to correct a deformity arising from a congenital abnormality are all deductible medical expenses, the cost of vitamins and health foods that improve a taxpayer's general health are not deductible as medical expenses.

Question 15

All of the following payments for medical items are deductible with the exception of the payment for

Accepted Answer

The answer of All of the following payments for medical...

Question 16

A medical expense is generally deductible only in the year in which the expense is actually paid.

Accepted Answer

Medical expenses are deductible only in the year they are paid, regardless of when the services were rendered or the expenses were incurred.

Question 17

In order for a taxpayer to deduct a medical expense,the amount must be paid to a licenced physician.

Accepted Answer

Medical expenses can be deducted if they are paid to a licensed medical practitioner such as a physician, dentist, or chiropractor. However, not all medical expenses need to be paid to a licensed physician in order to be deductible. Some other examples of deductible medical expenses include payments for prescription medications, hospital services, and certain medical equipment.

Question 18

The definition of medical care includes preventative measures such as routine physical examinations.

Accepted Answer

Medical care involves not only treating illnesses, but also preventing them. Routine physical examinations are one of the most common preventative measures in medical care.

Question 19

Expenditures incurred in removing structural barriers in the home of a physically handicapped individual are deductible only to the extent the costs exceed the increase in fair market value to the property attributable to the capital expenditure.

Accepted Answer

The answer of Expenditures incurred in removing structural barriers in...

Question 20

Medical expenses are deductible as a from AGI deduction to the extent that they exceed 2 percent of the taxpayer's AGI.

Accepted Answer

The floor for medical expenses is 10% of AGI.

Quiz 14: Itemized Deductions