[Anonymous]

how much do you think need to be included? I think it’s only $700 because the son is over 26 and is not a full time student.~~

Gail and Jeff Payne are married and filed a joint return for 2012. In 2012 they paid the following doctors’ bills for

Gail’s mother, who received over half of her support from Gail and Jeff, but who does not live in the Payne household, and who earned $3,500 in 2012 for babysitting. $700

Their unmarried 26-year old son, who earned $4,000 in 2012, but was fully supported by his parents. He is not a full-time student. 500

Disregarding the adjusted gross income percentage test, how much of these doctors’ bills may be included on the Paynes’ joint return in 2012 as qualifying medical expenses?

[MrsBing]

I'm 90% sure it's $1200.

The reason I included the $500 is because the son meets the SUPORT test, except for income. With medical expenses the income part of the test is excluded.

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[MrsBing]

I'm 90% sure it's $1200.

The reason I included the $500 is because the son meets the SUPORT test, except for income. With medical expenses the income part of the test is excluded.

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[gingercpa]

I think I saw this question somewhere!!

ans – $1200.00

AUD:78-5/13
FAR:84-10/20
REG:79- 12/5
BEC:Feb
CAL Candidate

[gingercpa]

I think I saw this question somewhere!!

ans – $1200.00

AUD:78-5/13
FAR:84-10/20
REG:79- 12/5
BEC:Feb
CAL Candidate

[Anonymous]

Full amount, the reason is that the dependency test for medical expenses is slightly different than in general, it does not consider limit for gross income, although very similar; so, for purposes of this medical expense, the son is a dependent, or in other words, qualifies, and a parent is allowed the full amount.

In other words the gross income test does not matter for medical expenses, only the support test.

[Anonymous]

Full amount, the reason is that the dependency test for medical expenses is slightly different than in general, it does not consider limit for gross income, although very similar; so, for purposes of this medical expense, the son is a dependent, or in other words, qualifies, and a parent is allowed the full amount.

In other words the gross income test does not matter for medical expenses, only the support test.

[Author]

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