Tom paid the medical expenses of his mother-in-law, age 70. Although Tom provided more than half the support, she does not qualify as Tom's dependent because she had gross income of $5,000. This expenditure is:
1. A deduction from adjusted gross income, subject to a 7.5% AGI floor.
2. Not deductible.
3. A deduction to arrive at adjusted gross income.
4. A deduction from adjusted gross income, subject to a 2% AGI floor.
Choice “1” is correct. Medical expenses are itemized deductions (from AGI), subject to a 7.5% AGI floor for taxpayers age 65 and older.
Note: The definition of “dependent” for purposes of taking the medical expenses for that person as an itemized deduction does not consider the dependent's gross income. Thus, there is no limitation to a dependent's gross income when it relates to medical or dental expenses. The remaining dependency tests apply and Tom's mother-in-law meets those tests.
Choice “3” is incorrect. Medical expenses are an itemized deduction from adjusted gross income, not an adjustment to arrive at adjusted gross income.
Choice “4” is incorrect. Medical expenses are subject to a 7.5% AGI floor; not 2%.
Choice “2” is incorrect. See above explanation.
If you pay medical expenses of someone over 65 your deduction is 7.5%? It doesn't say anywhere that Tom is over 70? This question lost me or I am missing something…. Can anyone help??
AUD 7/30/12 73; 12/2/13 85
BEC 7/19/13 81
REG 8/2/14 83
FAR - Jan 2015
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