Question

Answer the following Essential Question: What is the difference between Qualified Medical Expenses and deductible medical expenses?

Guiding Hints/Questions:

- are qualified medical expenses equal to the amount a taxpayer can claim on schedule A?

- give an example of how qualified medical expenses will differ from the actual amount the taxpayer can deduct.

- don't forget the limitations placed on medical expenses for 2019.

Answer 1

SOLUTION

QUALIFIED MEDICAL EXPENSES - IRS allows deduction of treatments , surgery , preventive care , dental and vision care  , visit to phycologist and phychiatrist , prescription medication and appliences , expenses for travel on medical care as qualified medical expenses .

Any medical expenditure that is reimbursed not qualify for deductions ,no deduction for non prescribed medicine (except insuline ) , expenses on cosmetics procedure , purchase for  genral health .

DEDUCTABLE MEDICAL EXPENSES - IRS allows deduction for medical expenses of total qualified expenditure that exceeds 7.5 % of adjusted gross  income (10% for year 2020) .

DIFFERENCE- Qualified medical expenditure are those expenditure which qualify for deduction whereas deductable medical expenses are those which are allowed as exemption in schedule A form 1040 .

- Qualified medical expenses cannot be equal to amount that tax payer claim on schedule A because qualified medical expenses are those expenses which qualify for deduction whereas deduction for schedule A will be excess of qualified medical expenses over 7.5% of AGI .

- Suppose total medical expenses during the year amount to $ 5000 out of which $ 1000 are reimberced by employer than qualified medical expense shall be $5000-$1000=$4000 .

- In 2019 limit for deduction on medical expenditure is 7.5% of AGI . Qualifing medical expenses above 7.5% of AGI could on;ly be claimede as deduction .

NOTE - PLEASE UPVOTE IT SHALL BE A GREAT FAVOR THANKS .

.