Medical expenses †deductibility in personal income taxation

Federal Income tax code specifies the generally deductible expenses in the somebodyal tax income of an individual which include aesculapian expenses, sure taxes, mortgage interest, investment interest and benignant contrisolelyions. These price reductions mentioned in the chapter argon known as itemized deductive reasonings. It has to be noned that whatsoever pulmonary tuberculosiss non specifically allowed as itemized entailments argon not allowable against the personal income contentedness to tax. checkup exam exam checkup expenses paying(a) break through by the rateable individual on himself, spouse and low-levels ar allowed as an itemized deduction. The additional points to be say argon that the deduction is allowed notwithstanding to the conclusion to which the aesculapian expenses atomic number 18 not reimbursed and the deduction is springed to 7.5% of the taxpayers Adjusted Gross Income.1.0 explanation OF MEDICAL EXPENSESThe definition of checkup expenses is real broad to get across not only the expenses incurred for the diagnosis, cure, mitigation, treatment, or prevention of the disease but excessively covers expenses incurred for preventive health cover and addresss of periodic physical and alveolar examinations of the taxpayer. The important point here is that much(prenominal) deductions are allowed even when the taxpayer is in peachy health. Hence, much(prenominal) aesculapian expenses incurred for the treatment of diseases touching every structure or do work of the body are termed as medical expenses for the purpose of assessing the income for tax purposes.2.0 COSMETIC SURGERY-DEDUCTIBILITYExpenses incurred for nonfunctional Surgery are deductible when the cognitive operation is necessary toamelioratea disfigurement arising from a congenial abnormality or a personal injury or A disfiguring disease.Any medical expenses incurred on cosmetic surgery for purposes other than those which are unnecessary are not deductible. For example, fees paid to a cosmetic surgeon for a face lift of a person of 75 socio-economic classs age to ameliorate his appearance is unnecessary and hence not deductible. But the cost of restoring the face by cosmetic surgery, which is disfigured in an accident, is deductible.3.0 DEDUCTIBILITY OF sealed OTHER EXPENSES4.1 COSTS INCURRED IN A NURSING HOME/HOME FOR elderWhen a person is admitted in a nursing basis or star sign for the aged originally to get medical safekeeping, indeed the expenses incurred for the nursing home expenses including meals and lodge are allowable as a deduction. However if the primary concern for cosmos admitted to the nursing home or the home for aged is personal, only the expenses paid for medical or cursing is deductible, whereas, costs of lodgment and meals are not deductible.4.2 TUITION EXPENSESWhen a dependent is sent to a direct having special resources for alleviating the infirmities caused by mental or physical disabil ity, the information expenses paid to the inculcate is an allowable deduction. In such(prenominal) cases, the cost of meals and lodging in addition to the tuition fees is allowable.4.3 MEDICAL EXPENSES INCURRED FOR SPOUSE AND DEPENDENTSA taxpayer is authorize to claim the deduction in his correct crying(a) income of the medical expenses incurred by him on his/her spouse and for a person who is dependent on him/her at the time such expenses were incurred. Again the dependency is to be obstinate on the basis of certain criteria as spelt out in the locomote and the schedules.4.4 EXPENSES INCURRED ON TRANSPORTATION, MEALS AND LODGING FOR MEDICAL discourseTransportation costs like bus, taxi, correct or plane fare, charges for ambulance services and out of pocket expenses for the use of an move for commutation to and from a point of treatment for medical care are deductible. The taxpayer is entitled to choose either a mileage requital or actual out-of-pocket automobile expense s. Deduction is allowed for the related parking fees and cost charges, whereas the cost of meals, en route are not allowed as a deduction. besides the cost of transportation of a heighten accompanying a sick claw or a nurse or other attendant accompanying a person who is triggering to get medical care is allowable, provided it is so that the patient mountain not travel alone and ask an aid to accompany during the journey.The Lodging expenses which are incurred essentially for medical care, when the medical care is provided by a limit in a licensed hospital or clinic are allowed as deduction. No lucullan or extravagant lodging expenses involving real element of personal pleasure deflexion or vacation in the travel away from home is allowed as deduction. The limit for such lodging expenses worthy for deduction is $50 per night for the patient as well as the person who moldiness accompany the patient.4.5 ALLOWABILITY MEDICAL INSURANCE PREMIUMS AS DEDUCTIONThe maximum limit of 7.5 % of the adjust gross income of the taxpayer allowable as deduction include the medical insurance allowances, no matter of the fact that such aids are paid to a lower place a group or individual plan. When the medical insurance premium is paid by the employer such premium is not included in the income of the taxpayer and it cannot be included in the employees medical expense either. Insurance premiums paid by a self employed person are allowed as a line of credit income. The premium paid for the spouse and dependents also qualify for deduction. Premiums paid by companies on their employees health care is allowed as avocation wasting disease for the companies concerned.4.0 DEDCUTION OF CAPITAL EXPENDITURES INCURRED FOR MEDICALPURPOSESWhen move is a part of a medical treatment and there is no availability of a neighborhood pussy whence the capital of the United States expenses incurred on constructing such pool will become eligible for deduction. too a Window Air-co nditioner which is not changeless in nature, dust elimination system, elevators and a room built to house an smoothing iron lung are some of the examples of allowable capital expenditure. The basic criteria in determining the allowability of such expenditure is that they are required as medical necessity upon the advice of a doctor or physician, the facility is used primarily by the patient alone and the expenditure is reasonable.Similarly expenditure like constructing charm and exit ramps to the residence widening hallways and doorways to harbor wheelchair, installing support bars and railings in bathrooms and other living rooms and adjusting any electrical outlets or fixtures offer themselves eligible for deduction provided that the expenditure is incurred to enable a physically handicapped individual withstand independently and productively. If a capital expenditure is allowed as a medical expense, then the allowable cost is deductible in the family incurred. All these expe nses are allowed subject to the overall ceiling of 7.5% of the adjusted gross income.5.0 DEDUCTION ARE ALLOWED ON A CASH BASISWhatever be the method of accounting adopted by the individual, the medical expenses are deductible on a cash basis. This means that the are deductible only in the year in which they are paid with an exception in the case of deceased person, when the expenses are paid within a year of death then the expenses would be deemed to hurl paid at the time when they are incurred. Deduction is not allowed currently for any medical expenses that is going to be incurred in the future, subject of course to the exception that the taxpayer has an stipulation to pay the fees in advance under the policy of the physician or the foot furnishing the medical care.Works CitedHoffman, Smith, Wills Individual income taxes 2007Chapter 10 pp 10-2 to 10-8West Federal Taxation (Thomson)