ExpertHard1 markMultiple Choice
CPA · Question 57 · Area IV: Individual Taxation
Which of the following is deductible as a medical expense on Schedule A (subject to the 7.5% AGI floor)?
Which of the following is deductible as a medical expense on Schedule A (subject to the 7.5% AGI floor)?
Answer options:
A.
Health insurance premiums paid with after-tax dollars.
B.
Funeral expenses.
C.
Over-the-counter medications (without a prescription).
D.
Gym membership for general health.
How to approach this question
Identify the qualified medical expense. Insurance premiums (if not pre-tax) are qualified.
Full Answer
A.Health insurance premiums paid with after-tax dollars.✓ Correct
A
Qualified medical expenses include payments for diagnosis, cure, mitigation, treatment, or prevention of disease. This includes health insurance premiums paid by the taxpayer (unless paid with pre-tax dollars). Funeral expenses, OTC drugs (except insulin), and general health club dues are not deductible.
Common mistakes
Thinking funeral costs are medical expenses.
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