However, Alicia had income in January, February, and December, so she files her own tax return. Alicia lived with Joanna for more than 183 days.ĭuring her stay, Joanna paid $8,000 in medical expenses for Alicia as well as other living expenses. Alicia stays until December when she recovers, finds a job, gets her own apartment again, and moves out. Joanna lets Alicia move into her home in May. Alicia becomes terribly ill in February, loses her job in March, is evicted from her apartment in April, and has no family to depend on. If the son can establish that he provides more than half of their support, then, despite the fact that he lives thousands of miles away in a different country, he may claim a deduction for all of the medical expenses he paid for his parents even though he does not claim them as dependents and his parents file their own separate tax return. Their son pays all of their medical expenses. Their son lives and works in New York City. Mother and father are retired and living in Scotland. This was added because it is typical for elderly parents to have social security income, so Congress did not want their Social Security income to inhibit the ability of a child to claim a deduction for the medical expenses paid. Section 213 disregards the income of a “qualifying relative,” but it still takes into account whether you provided more than one-half of that person's support during the year.
Let's first start with the most common scenario, which is going to involve a taxpayer's parents. So let's provide some examples to really drive the point home.
#Deductible medical expenses 2020 full
The full scope and power of Section 213, however, is only realized when you apply the statutory modification to Section 152. We also know that, as applied to a person related to you by blood, marriage, or law, the individual does not actually have to live with you the law only requires that you provide more than half of their support and that the person make less than $4200 in order to claim the person as a dependent. We also know that the statutory definition of a "relative" can include anyone, including an entirely unrelated person as long as that person has lived with you for more than 183 days. Now, we know what dependents qualify under Section 152: qualifying children and qualifying "relatives." Who Is Considered a Qualifying Dependent?
More specifically, it expands medical deductions to those individuals that would be dependents but for "subsections (b)(1), (b)(2), and (d)(1)(B)." In other words, this requires statutory reconstruction. In other words, Section 213 extends the medical expenses you can deduct to individuals not listed on your tax return as dependents. The reference to "(d)(1)(B)" is the statutory provision that requires a qualifying relative to have income less than the personal exemption amount $4,200. Speak with one of our tax attorneys for individuals from our team today to learn more about our services by calling us at (833) 227-8761 or contacting us online. The reference to "(b)(2)" is the statutory provision that declares that you generally cannot claim someone as a dependent if they're married subject to certain income rules. The reference to "(b)(1)" is the statutory provision that disallows a dependent of another from claiming their own dependents. However, in referencing Section 152, it makes a modification by adding the clause: "determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof." The deduction for medical expenses under Section 213 states that there shall be allowed as a deduction for expenses paid for medical care of an individual as well as that individual’s spouse, qualifying child of the household, or qualifying relative as determined under Section 152. Can You Deduct Medical Expenses of Parents and Relatives That Don’t Live With You?
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