Cheryl is a successful attorney licensed in Connecticut and is your new tax clie

Question

Cheryl is a successful attorney licensed in Connecticut and is your new tax client. Her sister-in-law, Joy, is married and lives in the next town. Unfortunately, Joy was diagnosed this summer with bone cancer, called chondasarcoma, and has been in the ICU (Intensive Care Unit) at Memorial Sloan Kettering Cancer Center in New York City and has had 6 surgeries during the 5 weeks there in the ICU. Cheryl estimates that the medical bill for the hospital will be upwards of $500,000. Joy does not have good medical insurance nor good finances. Cheryl would like to pay $50,000 of Joy's medical expenses by the end of December. How can Cheryl account for this payment on her personal tax return for 2017? Please explain in detail (at least 3 substantive sentences.)

Explanation / Answer

A. If Cheryl pay the expenses directly, she might qualify to claim the expenses as her own medical expenses deduction. But usually, to qualify Cheryl must claim joy as her dependent.

Exceptions to this one:

1. Cheryl to include the expense in her deduction if joy don't have the proper income to meet her own expenses.

2. Joy didn't file any return for the year Cheryl paid the expenses.

B. Cheryl is allowed to deduct it as medical expenses only if this $ 50000 is more than 10% of her gross income or else she is not eligible to claim it as a deduction.

C. Cheryl can support 50% of the support in the way proceeded in combination with someone else for claiming deduction of the personal tax returns 2017.

Here Joy is considered as a dependent according to the statement in the question of not having medical insurances nor good finances so there will be tax filings by her.

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