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$9,602.58 in unreimbursed employee expenses.6 At trial,
petitioner explained that the unreimbursed employee expenses
consisted of his rental payments at the Ontario apartment and the
traveling expenses he incurred going back to Aliso Viejo on
weekends. Petitioner also contended that he should not have to
pay tax on Social Security and Medicare withholdings since they
are not considered income.
Respondent disallowed the expenses claimed on Schedule A
and, instead, allowed the standard deduction.
a. Medical Expenses
Section 213(a) provides that “There shall be allowed as a
deduction the expenses paid during the taxable year, not
compensated for by insurance or otherwise, for medical care of
the taxpayer, his spouse, or a dependent * * * to the extent that
such expenses exceed 7.5 percent of adjusted gross income.” The
taxpayer must substantiate any deductions claimed under section
213 by furnishing the name and address of each person to whom
4(...continued)
of $1,352.45, California State disability insurance withheld of
$412.97, and “buyer’s taxes”, which petitioner estimated at $750.
Petitioner agrees that “buyer’s taxes” are the equivalent of a
sales tax.
5 This amount includes Social Security tax withheld of
$2,456.26, Medicare tax withheld of $574.45, and Social Security
benefits allegedly repaid by petitioner of $905.
6 This is after the 2 percent of adjusted gross income
limitation. Petitioner did not state on his return what these
expenses encompassed.
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