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not apply to any taxpayer for any month for which the taxpayer is
eligible to participate in a subsidized health plan maintained by
his employer. See sec. 162(l)(2)(B). Petitioner was eligible to
participate in such a plan throughout 1993 and 1994. See 5 U.S.C.
secs. 8905 and 8906(b)(1) and (2) (1994). Petitioners may not
deduct on Schedule C any amount paid for employer-sponsored
medical insurance. On the basis of the record, petitioners are
not entitled to claim on Schedule C any medical expense deduction
for 1993 or 1994.
Petitioner testified that the amount deducted on Schedule A
as medical expenses for 1993 included $1,216 for his wife’s health
insurance payments. Petitioners produced copies of “Explanation
of Benefits” (EOB’s) that are evidence that Mrs. Reynolds was
covered during 1993 by a health insurance plan sponsored by her
employer. The EOB’s are not, however, evidence of the amount, if
any, that Mrs. Reynolds paid for her health plan coverage. Mrs.
Reynolds, who testified on other matters, gave no testimony on the
subject of health insurance payments. Petitioners have failed to
substantiate that they made any expenditure in 1993 for medical
insurance.
Copies of the EOB’s in evidence, along with other receipts
supplied by petitioners, show that Mrs. Reynolds incurred
$1,419.71 of dental, optical, and prescription expenses that were
not covered by her employer sponsored health plan in 1993.
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