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deduction by petitioners, all but $22 was spent for medical
services for petitioners. Petitioners have not proven that an
employee plan existed for the Registry. Except for petitioner's
conclusory testimony that a plan existed, there is no evidence of
such a plan or its terms of coverage. Medical expenses are
normally considered to be personal,5 and an employer's payment of
medical expenses for employees would normally constitute taxable
income. Section 105 provides for the exclusion of employer-paid
medical expenses if certain conditions are met. However, even if
some type of plan did exist, petitioners have not established (or
even argued) that it would meet the conditions of section 105.
We sustain respondent's disallowance of the claimed medical
expenses.
Petitioner testified that the $1,497 of child care expenses
deducted as employee benefits was paid for the care of
petitioners' child. Petitioners provided checks for child care
totaling only $818. Such expenses would normally be considered
personal, and an employer's payment of its employees' child care
expenses would normally be includable in the employees' taxable
income. Section 129 provides an exception for qualified
dependent care programs. Petitioners have neither proven nor
argued that their situation meets the requirements of section
5Petitioners elected the standard deduction on their return
and, therefore, make no claim for an itemized deduction under
sec. 213.
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