Reba, who is single, does a lot of business entertainingat home. Lawrence, Reba’
ID: 2458239 • Letter: R
Question
Reba, who is single, does a lot of business entertainingat home. Lawrence, Reba’s 84-year-old dependent grandfather,lived with Reba until this year when he moved to Lakeside NursingHome because he needs medical and nursing care. During the year,Reba made the follwoing payments on behalf ofLawrence:
Room at Lakeside $11,000
Meals for Lawrence at Lakeside 2,200
Doctor and nurse fees at Lakeside 1,700
Cable TV service for Lawrence’s room at Lakeside380
Total $15,280
Lakeside has medical staff in residence. Disregardingthe 7.5% floor, how much, if any, of these expense qualifies for amedical expense deduction by Reba?
Explanation / Answer
Medical expenses paid for a spouse or a qualifying dependent are tax deductible. Parents orother relatives generally qualify as dependentsif they can be claimed as personal exemptions on anindividual income tax return. Gross income and joint-filing tax return rulesthat limit the availability of dependency exemptions do not apply when claiming adependent's medical expenses. An individual must be a dependent ofthe person who files the tax return either at the time theindividual receives medical care or when medical bills arepaid.
Medical expenses are only tax deductible to the extent that theyare not reimbursed by an insurance company and exceed 7.5 percentof an individual's adjusted gross income
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