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2. Medical Expense Deductions
Section 213(a) allows “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.”
Petitioner now concedes that the medical expense deductions
claimed on his returns are overstated to the extent that the
insurance reimbursements received on account of his spouse’s
medical insurance plan have not been taken into account. See,
e.g., Marlett v. Commissioner, T.C. Memo. 1976-105.
Petitioner’s concession on this point, in and of itself,
eliminates petitioner’s entitlement to a medical expense
deduction for 1993. Respondent’s determination that he is not
entitled to a medical expense deduction for that year is
therefore sustained.
As to 1994, we find that petitioner’s medical expense
deduction for that year is also overstated to the extent that it
includes amounts withheld for Medicare from his and his spouse’s
wages. Medicare taxes do not qualify for deduction under section
213. Sec. 1.213-1(e)(4)(i)(a)(3), Income Tax Regs. Taking into
account the increase to petitioner’s 1994 adjusted gross income
resulting from our holding regarding the Schedule E deductions,
petitioner’s concession with respect to the medical insurance
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Last modified: May 25, 2011