Medical deduction or not

[FEDUKE404]

Taxpayer has dependent who is a college student.

The student/parent pays the required fees (which would probably be eligible for tax credits et al except they disappear due to overall income issues) in addition to tuition, room/board, etc.

When looking through said fees, one fee is specifically called "health services fee" and shows a dollar amount. The college confirms this is what everyone pays in order to be able to use the student health services, although additional costs (medications/referrals) must then be paid for a student who might require such items after visiting student health.

So - is there any way the "health services fee" can be treated as a Schedule A allowable medical deduction??

(I think probably not, but just so far cannot find anything definitive either way.)

FE

[erchess]

My Approach

The college says the expense is for medical.

There exists on Sch A a category called Medical.

It would benefit the taxpayer to put the expense on Sch A in the Medical category.

I don't come to the problem with knowledge that the expense cannot be put in that category and there is nothing about this category of expense in my handy dandy reference book's list of nondeductible medical expenses.

Therefore I would put it in that category and move on.

[Uncle Sam]

Medical Deduction or Not

Is that fee a mandatory part of the registration, or can the parents elect NOT to have it and be provided any medical benefits

[S T]

Search

I did a quick google search under health service fees college tuition and found that most colleges require it - might be a waiver in certain cirucumstances.

Maybe check your t/p's college website.

Sandy

[erchess]

Required or Not

OP said the fee was required.

I am not aware of any requirement that a Sch A Medical expense must be or cannot be a required fee if it is part of the college expenses of a dependent.

[FEDUKE404]

Health services fee IS a requirement

OP said the fee was required.

I am not aware of any requirement that a Sch A Medical expense must be or cannot be a required fee if it is part of the college expenses of a dependent.

The fee IS required for registration, and the actual size of the fee is strangely enough based upon the semester credit hours taken.

There is a separate, unrelated issue also: The student must also pay for his/her medical insurance through a school policy UNLESS proof of comparable medical insurance coverage (such as through a parent with a "family plan") is provided. In such a case, the medical insurance payment/coverage is then waived by the school upon verification of the existence of appropriate coverage.

To reiterate, the "health services fee" is paid by all students. In theory it covers the costs of routine visits to student health for aches, pains, and whatever.

FE

[S T]

My Thoughts

I haven't researched a lot on the issue but if your taxpayer can qualify for medical, since the health service fee which is a requirement from the College and it does offer some type of "health/medical service" then I would think it would be a deductible Medical Expense.

Just my opinion and no cite to offer

Sandy

[AuditorTurnedGood]

If the income of the parents

is such that it eliminates eligibility for education tax credits, is it safe to say the same AGI would eliminate the deduction on Schedule A for what I would assume is a fairly modest fee when you apply the 7.5% floor?

ATG

[DonPriebe]

Cannot be educational expenses

Student medical expenses, including health fees, cannot be used for the educational credits. (Pub 17, page 235)

[Bees Knees]

IRS Pub 502, page 14:

Tuition

Under special circumstances, you can include charges for
tuition in medical expenses. See Special Education, earlier.

You can include charges for a health plan included in a
lump-sum tuition fee if the charges are separately stated or
can easily be obtained from the school.

In my opinion, if the student is required to pay a "health services fee" as part of the cost of tuition, the fee is a lump-sum tuition fee for a health plan (the right to use the health facilities at the school in case of illness or accident).

Thus the fee is deductible as a medical expense.

[FEDUKE404]

Tax credit explanation

Student medical expenses, including health fees, cannot be used for the educational credits. (Pub 17, page 235)

You are correct on that issue.

However, having endured way too many Forms 1098-T with meaningless numbers on them, finding the bits and pieces of "bundled fees" can be quite troublesome. Toss in the academic year for the expenses and the calendar year for the scholarships, and you are frequently comparing apples/oranges/coconuts. But that topic has been beaten to death previously on these boards.

And in this case, there are plenty of remaining allowable education expenses that could in theory have been used absent the taxpayer income levels.

FE

[FEDUKE404]

Other medical expenses

is such that it eliminates eligibility for education tax credits, is it safe to say the same AGI would eliminate the deduction on Schedule A for what I would assume is a fairly modest fee when you apply the 7.5% floor?

ATG

That is not a good assumption. While the 7.5% floor amount is high, there are still plenty of allowable deductions remaining.

The total "health services fees" deduction for the taxpayer is in the range of $400, which probably would save at least a Benjamin Franklin or so for the taxpayer, taking into account federal and state taxes.

FE

[AuditorTurnedGood]

The total "health services fees" deduction for the taxpayer is in the range of $400, which probably would save at least a Benjamin Franklin or so for the taxpayer, taking into account federal and state taxes.FE

Point taken. However, I assumed we were discussing taking the health fee as a Sch A Medical Expense on the return of the parents. Unless they have a bail of other medical expenses to throw at the pile, I would imagine that AGI-ing out of the education credits (Either at 116K for MFJ or 58K for single, using 2008 phaseouts) would defacto kill the $400 deduction.

I could be missing something - it happens plenty on the off season.

[FEDUKE404]

Sch A floor

Point taken. However, I assumed we were discussing taking the health fee as a Sch A Medical Expense on the return of the parents. Unless they have a bail of other medical expenses to throw at the pile, I would imagine that AGI-ing out of the education credits (Either at 116K for MFJ or 58K for single, using 2008 phaseouts) would defacto kill the $400 deduction.

I could be missing something - it happens plenty on the off season.

Individual has >$30k of allowable medical deductions above the 7.5% AGI floor.

And my own off-season brain patooies (sp?) also seem to be of a similar nature!

FE

[AuditorTurnedGood]

That's

the most medical I think I've seem!

ATG