AF 450 – Federal Taxation I
Dr. Julia M. Camp
Solutions to Suggested Problems
Chapter 7: 1, 2, 3, 4, 7, 11, 15, 20, 21, 26, 35, 36, 39, 40, 42, 47, 50, 51, 53, 54, 60
A taxpayer may deduct medical expenses incurred on behalf of the
taxpayer, the taxpayer's spouse, and the taxpayer's dependents.
The taxpayer may also
deduct medical expenses paid for an individual who would otherwise qualify as a
dependent except for the fact that the gross income test is not met, even though the
taxpayer may not take an exemption for the individual.
Medical expenses incurred by the divorced parents of a child are
deductible by whichever parent incurs the expenses, even though the parent incurring the
expenses is not entitled to the dependency exemption for the child.
The taxpayer who is the subject of a multiple support agreement is treated
as the dependent of the taxpayer who is entitled to take the dependency exemption.
a taxpayer may deduct medical expenses (subject to the 7.5% of AGI limit) incurred for a
dependent, the taxpayer entitled to the dependency exemption under the multiple support
agreement should be the one who pays the medical expenses.
Medical care is defined as amounts paid for:
The diagnosis, cure, mitigation, treatment, or prevention of disease.
The purpose of affecting any structure or function of the body.
expenses incurred for cosmetic surgery are not deductible).
Transportation primarily for and essential to the first two items listed
Long-term care services for the chronically ill.
Chronically ill generally is
defined as the loss of certain daily living activities such as eating,
toileting, bathing, dressing, and continence.
Insurance covering all of the items above.
However, the deductibility of
long-term care insurance premiums is subject to a dollar ceiling based on
The Internal Revenue Code defines cosmetic surgery as any procedure that
is directed at improving the patient's appearance and does not meaningfully promote the
proper function of the body or prevent or treat illness or disease.
In general, the cost of cosmetic surgery is not deductible unless it is
necessary to ameliorate a deformity arising from or directly related to, a congenital
abnormality, a personal injury resulting from an accident or trauma, or a disfiguring
The cost of lodging and 50% of the cost of meals incurred en route to
obtain medical treatment generally is deductible as a medical expense.
However, the cost
of meals on trips too short to warrant a stop for meals is not deductible.
transportation, 50% of meals and lodging costs for a nurse, parent, or spouse are also