During 2015, Susan, age 49, incurred and paid the following expenses for Beth (h

Question

During 2015, Susan, age 49, incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself: Surgery for Beth $4,500, Red River Academy charges for Beth: Tuition $5,100, Room, board, and other expenses $4,800, Psychiatric treatment $5,100, Doctor bills for Ed $2,200, Prescription drugs for Susan, Beth, and Ed $780, Insulin for Ed $540, Non-prescription drugs for Susan, Beth, and Ed $570, Charges at Heartland Nursing Home for Ed: Medical care $5,000, Lodging $2,700, Meals $2,650

Beth qualifies as Susan's dependent, and Ed would also qualify except that he receives $7,400 of taxable retirement benefits from his former employer. Beth's psychiatrist recommended Red River Academy because of its small classes and specialized psychiatric treatment program that is needed to treat Beth's illness. Ed, who is a paraplegic and diabetic, entered Heartland in October. Heartland offers the type of care that he requires.

Upon the recommendation of a physician, Susan has an air filtration system installed in her personal residence. She suffers from severe allergies. In connection with the equipment, Susan incurs and pays the following amounts during the year. Filteration system and cost of installation $6,500, Increase in utility bills due to the system $700, Cost of cerified appraisal $360. The system has an estimated useful life of 10 years. The appraisal was to determine the value of Susan's residence with and without the system. The appraisal states that the system increased the value of Susan's residence by $2,200. Ignoring the 10%-0f-AGI floor, what is the total of Susan's expenses that qualifies for the medical expense deduction?

Explanation / Answer

Surgery for Beth................................ $4,500

Red River Academy charges for Beth Tuition...... $5,100

Room, board, and other expenses....................... $4,800

Psychiatric treatment ......................................... $5,100

Doctor Bills for ED............................................... $2,200

Prescription drugs for Susan, Beth, and ED................. $780

Insulin for ED................................................. $540

Nonprescription drugs for Susan, Beth, and ED................ $570

Charges at Heartland Nursing Home for ED Medical Care........ $5,000

Lodging.............................................................. $2,700

Meals................................................................. $2,650

Deductible cost for filtration(6500-2200)------------------------------ 4300

Increase in utility bills due to the system----------------------- 700

Total medical expenses (prior to 7.5% floor)------------------ $39,370

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