ACC 287 Lecture Notes - Lecture 3: Flexible Spending Account, Plastic Surgery, Foreign Tax Credit
Qualified medical expenses minus insurance reimbursements minus ten percent (7.5 for 65 and over) of
AGI = Excess expenses qualifying for medical deduction
What qualifies as a medical expense?
Cost of items for the diagnosis, cure mitigation, treatment, and prevention of disease.
What type of medical expenses are not deductible?
cost of travel for general improvement, expense of a swimming pool unless designed for
hydrotherapeutic treatment, weight loss programs unless prescribed by a doctor, marriage counseling,
unnecessary cosmetic surgery unless is corrects a congenital abnormality, personal injury from an
accident or trauma or a disfiguring disease.
What is a way a taxpayer can enjoy a tax benefit for medical expenses less than ten percent?
bu using the medical flexible spending account and excluding up to 2,550 from gross income. The after
tax savings is basically identical to taking the medical expense deduction for the same amount.
What types of medical insurance are deductible?
medical health insurance premiums, health maintenance plans, supplemental payments for optional
medicare coverage, premiums for long-term care insurance,
What types of medical insurance are not deductible?
insurance policy premiums that pay a specific amount daily or weekly for hospitalization
If a deduction is taken for items in arriving at AGI, then those same expenses are ________________
from the medical deduction on schedule A
Excluded
What types of medicines and drugs are deductible and not deductible?
deductible: prescription medicines and drugs
non-deductible: drugs purchased illegally abroad, and over the counter drugs
What types of capital expenditures for medical reasons are allowable?
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Document Summary
Qualified medical expenses minus insurance reimbursements minus ten percent (7. 5 for 65 and over) of. Agi = excess expenses qualifying for medical deduction. Cost of items for the diagnosis, cure mitigation, treatment, and prevention of disease. What is a way a taxpayer can enjoy a tax benefit for medical expenses less than ten percent? bu using the medical flexible spending account and excluding up to 2,550 from gross income. The after tax savings is basically identical to taking the medical expense deduction for the same amount. What types of medical insurance are deductible? medical health insurance premiums, health maintenance plans, supplemental payments for optional medicare coverage, premiums for long-term care insurance, What types of medical insurance are not deductible? insurance policy premiums that pay a specific amount daily or weekly for hospitalization. If a deduction is taken for items in arriving at agi, then those same expenses are ________________ from the medical deduction on schedule a.
