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address of each person to whom payment for medical expenses was
made and the amount and date of the payment thereof in each case
in connection with claims for deductions under section 213. Sec.
1.213-1(h), Income Tax Regs.
The cost of educational services rendered to the mentally
handicapped can qualify as a medical expense. Fay v.
Commissioner, 76 T.C. 408, 412 (1981) (citing Fischer v.
Commissioner, 50 T.C. 164 (1968)); sec. 1.213-1(e)(1)(v), Income
Tax Regs. Medical care includes the entire cost of institutional
care for a person who is mentally ill and unsafe when left alone.
Sec. 1.213-1(e)(1)(v), Income Tax Regs. Whether a service
constitutes medical care will depend upon its therapeutic nature
to the individual, and not upon the title of the person rendering
the service or the general nature of the institution in which the
services are rendered. Fay v. Commissioner, supra. The services
provided must be directly or proximately related to the
mitigation, alleviation, or treatment of the individual’s disease
or disability. Fay v. Commissioner, supra, (citing Jacobs v.
Commissioner, 62 T.C. 813 (1974)).
If a mentally disturbed individual with learning
disabilities is sent to an educational institution
which also has resources for treating the mental
handicap, and if the principal reason for his
attendance at the institution is for the use of those
resources to alleviate or mitigate the mental handicap,
and if the institution’s educational program is only
incidental to its medical care function, the school
will be considered a “special school” [under section
1.213-1(e)(1)(v)(a), Income Tax Regs] * * * [Fay v.
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