Emma Doyle is employed as a corporate attorney. Forcalendar year 2008, she had A

Question

Emma Doyle is employed as a corporate attorney. Forcalendar year 2008, she had AGI of $100,000 and paid the followingmedical expenses:

Medical insurance premiums $3,700

Doctor and dentist bills for Bob and April (Emma’sparents) 6,800

Doctor and dentist bills for Emma 5,200

Prescription medicines for Emma 400

Nonprescription insulin for Emma 350

Bob and April would qualify as Emma’s dependentsexcept that they file a joint return. Emma’s medicalinsurance policy does not cover them. Emma filed a claim forreimbursement of $2,800 of her own expenses with her insurancecompany in December 2008 and received the reimbursement in January2009. What is Emma’s maximum allowable medical expensededuction for 2008? Prepare a memo for your firm’s tax fileswhere you document your conclusions.

Explanation / Answer

If a taxpayer can claim a dependent exemption forsomeone, the taxpayer also can deduct medical expenses he or hepaid for that person. Medical expenses paid also might bedeductible even if theperson for whom they were paid cannot be claimed as adependent.
      My understanding of this is that aslong as her parents qualify as dependents......that the fact thatthey filed a joint return is an exception to her being able towrite off the medical expenses...therefore they can be included asa write off in this case. :
You can include in medical expenses amounts youpay for prescribedmedicines and drugs. A prescribed drug is one that requiresa prescription by adoctor for its use by an individual. You can also include amounts you pay for insulin. Except for insulin,you cannot include inmedical expenses amounts you pay for a drug that is not prescribed    Therefore we can deductthe insulin.    Therefore we can deductthe insulin. : You must reduce your total medical expenses for the year byall reimbursements for medical expenses that you receive frominsurance or other sources during theyear.       This means that we will have totake care of theremibursement in 2009 not 2008 : When onequalifies to deduct anothers medical expenses, they addsthose expenses to the rest of their medical expenses. If theitemizes deductions, then he deducts those that exceed 7.5%of their adjusted gross income. When siblings have a multiplesupport agreement, the one claiming the exemption should pay anddeduct the medical expenses, because the others won't be allowed todeduct any medical expenses they pay. :
so the following charges are included inthe gross deductions :
3700 6800 5200 400 350 totaling 16450......any of this amount over 7.5% of AGI isdeductible : .075(100000)=7500 net medical deduction :
16450-7500=$8950 :
memo should read that the reimbursement from Jan 2009 needs to beincluded in 2009 taxes........ :
memo should read that the reimbursement from Jan 2009 needs to beincluded in 2009 taxes........

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