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employers. Petitioners submitted all of Mr. Marple’s earnings
statements from Eber and API for 2002 to substantiate the
payments for health insurance.
Mr. Marple’s earnings statements from Eber for 2002 do not
indicate that any amounts were paid for health insurance. Mr.
Marple’s earnings statements from API for 2002 indicate that a
total of $5,714.54 was listed under “Fringe Benefits” for health
insurance for the year. This amount was not included in the
calculation of Mr. Marple’s gross wages from API for 2002, nor
did petitioners include this amount in income on their 2002 Form
1040. Thus, the $5,714.54 was not paid by Mr. Marple; rather, it
appears that API paid that amount for Mr. Marple’s health
insurance. A taxpayer may deduct amounts that the taxpayer has
paid for himself or his dependent, but not amounts that a third
party has paid on the taxpayer’s behalf. See McDermid v.
Commissioner, 54 T.C. 1727 (1970). Petitioners presented no
other evidence substantiating any medical care expenses,
qualified or otherwise, that would make up the $7,100 portion of
the medical and dental expenses claimed on their 2002 Schedule A.
We conclude that petitioners are not entitled to deduct the
$7,100 at issue as medical care expenses under section 213 for
taxable year 2002.
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Last modified: November 10, 2007