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A. Medical Care Expenses
As a general rule, section 262(a) prohibits a deduction for
“personal, living, or family expenses.” An exception to this
general rule is provided by section 213 for certain medical care
expenses. Gerstacker v. Commissioner, 414 F.2d 448, 450 (6th
Cir. 1969), revg. and remanding 49 T.C. 522 (1968). Under
section 213(a), a taxpayer may deduct expenses paid during the
taxable year, not compensated for by insurance or otherwise, for
medical care of the taxpayer, the taxpayer’s spouse, or a
dependent, to the extent that such expenses exceed 7.5 percent of
adjusted gross income. Expenditures for insurance covering
medical care are included in the definition of amounts paid for
medical care. Sec. 213(d)(1)(D). To substantiate a deduction
under section 213, a taxpayer must provide the name and address
of each person to whom payment was made and the amount and date
of each payment. Sec. 1.213-1(h), Income Tax Regs.
Petitioners claimed medical and dental expenses of $8,020 on
their 2002 Schedule A, and respondent has conceded that
petitioners have substantiated $920 of this amount. Petitioners
essentially contend that the remaining $7,100 of their claimed
medical and dental expenses represents payments made by Mr.
Marple for health insurance through withholding by his
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Last modified: November 10, 2007