Medical deduction or not

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  • JohnH
    Senior Member
    • Apr 2007
    • 5339

    #16
    Try preparing a return for someone who's a private-pay patient in a skilled nursing facilility or Alzheimers unit. In those cases you're usually dealing with $60K/year at a minimum. Even qualifying assisted living will usually start at around $40K/year.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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    • OtisMozzetti
      Senior Member
      • Dec 2007
      • 530

      #17
      Originally posted by DonPriebe
      Student medical expenses, including health fees, cannot be used for the educational credits. (Pub 17, page 235)
      Publ. 17 goes on to say "this is true even if the fees must be paid to the institution as a condition of enrollment or attendance".

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      • OtisMozzetti
        Senior Member
        • Dec 2007
        • 530

        #18
        phsseouts raised way up

        Originally posted by AuditorTurnedGood
        ...
        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.
        ...
        Please note, by the way, that the 2009 phaseouts have been raised way up, by the "American Opportunity" (Education) Tax Credit put into the economic stimulus law, to phaseout from $80K to $90K for single and from $160K to $180K for MFJ.
        Last edited by OtisMozzetti; 09-12-2009, 12:30 PM.

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        • FEDUKE404
          Senior Member
          • May 2007
          • 3646

          #19
          Discussion does NOT involve tax credits...

          Originally posted by DonPriebe
          Student medical expenses, including health fees, cannot be used for the educational credits. (Pub 17, page 235)
          Originally posted by OtisMozzetti
          Publ. 17 goes on to say "this is true even if the fees must be paid to the institution as a condition of enrollment or attendance".
          Please note that the original question in my first post was whether the "health services fees" could be considered as an allowable Schedule A medical deduction.

          (Due to income levels, the client is NOT eligible for any education tax credits based upon tuition costs and required fees, regardless of whatever portion of those required fees would be allowable for the determination of any such tax credits.)

          Perhaps I did not state my initial question quite clearly enough??

          I do think the answer by Bees Knees is worthy of consideration, although the phrase "health plan" might present an obstacle.

          FE

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          • Burke
            Senior Member
            • Jan 2008
            • 7068

            #20
            "The fees paid to a dependent's educational institution generally include a fee for insurance and medical care. The applicable part is deductible as a part of medical expenses." CCH 1040 Express, page 2-7.

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            • AuditorTurnedGood
              Senior Member
              • May 2008
              • 326

              #21
              Thansk for the heads up

              Originally posted by OtisMozzetti
              Please note, by the way, that the 2009 phaseouts have been raised way up, by the "American Opportunity" (Education) Tax Credit put into the economic stimulus law, to phaseout from $80K to $90K for single and from $160K to $180K for MFJ.
              I saw this over the weekend when I was running a projection for a client. Thanks for keeping us in the loop!

              ATG
              "Congress has spoken to this issue through its audible silence."
              Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

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