Which of the following is deductible as a medical expense on Schedule A (subject to the 7.5% AGI floor)?

Answer options:

Health insurance premiums paid with after-tax dollars.

Funeral expenses.

Over-the-counter medications (without a prescription).

Gym membership for general health.

How to approach this question

Identify the qualified medical expense. Insurance premiums (if not pre-tax) are qualified.

Full Answer

A.Health insurance premiums paid with after-tax dollars.✓ Correct

Qualified medical expenses include payments for diagnosis, cure, mitigation, treatment, or prevention of disease. This includes health insurance premiums paid by the taxpayer (unless paid with pre-tax dollars). Funeral expenses, OTC drugs (except insulin), and general health club dues are not deductible.

Common mistakes

Thinking funeral costs are medical expenses.

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