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Tax Topic 4 - Claiming Medical and Dental Expenses
In figuring the medical and dental expenses deduction you will learn which expenses and whose expenses you can claim on your tax return. You can include in your medical expense deduction the cost of diagnosis, cure, mitigation, treatment, or prevention of disease including the costs of equipment and devices needed for these. This topic will help you understand the itemized deduction for medical and dental expenses. Medical expenses would not include items that are for the general health as with vitamins.Tax School Homepage Student Instructions: Print this page, work on the questions and then submit test by mailing the answer sheet or by completing quiz online. Instructions to submit quiz online successfully: Step-by-Step check list Answer Sheet Quiz Online
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Use IRS Publication 502, Form 1040 Instructions (Form 1040 instructions only up to page 98) and Schedule A (1040) instructions to complete this tax topic. Please note: Form 1040 Instructions (Form 1040 instructions only up to page 98) will be used for the rest of the topics in the initial tax preparer certification course. You will be responsible to answer questions from the Form 1040 instructions booklet (up to page 98) on every topic so read it carefully.
Additionally, Rodolfo paid Anna's medical bill in the amount of $1,300 for medical treatment she received before they got married. Medical Expenses for Lucia Lopez (SSN 020-20-5678 - Anna's mother):
Lucia Lopez lived with the Ramirez for more than half of 2013 and received total support from the Ramirez family. However, she filed a joint return with her husband. Lucia and her husband had taxable income of $2,450 and after their tax of $246 they still received a refund of $534. Medical Expenses for Beatriz Ramirez (SSN 602-20-2031 - Rodolfo's sister):
Beatriz lived with Rodolfo and Anna for more than half of 2013 and received total support from them. However, Beatriz worked as a waitress and earned $11,000 from her job. Additional expenses for the Ramirez Family:
Rodolfo purchased a new motor vehicle on March 15, 2013, for $56,500 before taxes. He paid 4% sales tax on the purchase. Additionally, Rodolfo kept receipts for sales taxes paid on other items such as clothing and furniture and the total sales tax for these were $370. Rodolfo contributed 12% of his gross wages to his religious organization: Downtown Church, 5647 Santee Court, Aberdeen, SD 57401. Rodolfo contributed $4,000 to an IRA.
Get basic information from
the following W2, including income information. Have
their
return prepared and ready to answer the questions. Tax Return Situation 2: Prepare a Federal Form 1040 return for Mukesh (DOB 2/27/1975). Also fill out a Schedule A (Form 1040). He had the following medical expenses for the year:
Mukesh was diagnosed by his physician with a heart disease. His doctor advised Mukesh to enroll in a gym. Mukesh paid $45 per month in 2013 for the gym membership. Mukesh drove 1,879 miles for medical reasons from January - June 2013 and 1,000 miles from July through December 2013. He spent $600 in gas, $38 for oil, and $110 for tolls and parking. Get their personal information from the following W2, including address and income information.
Complete the following questions after you have complete the above tax returns: 1. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 7?
A. $9,530.
2. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 32?
A. $12,961.
3. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 38?
A.
$28,143.
4. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 40?
A. $9,530.
5. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 41?
A. $9,530.
6. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 43?
A. $9,530.
7. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 44?
A.
$31.
8. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 62?
A. $9,530.
9. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 73?
A.
$2,461.
10. Look at the Form 1040 you prepared for Rodolfo and Anna. What is the amount on Form 1040, Line 74a?
A. $9,530.
11. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 7?
A. $29,064.
12. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 22?
A. $9,530.
13. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 38?
A. $9,530.
14. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 40?
A. $10,078.
15. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 41?
A. $9,530.
16. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 42?
A. $9,530.
17. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 43?
A.
$15,186.
18. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 44?
A. $9,530.
19. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 62?
A. $9,530.
20. Look at the Form 1040 you prepared for Mukesh. What is the amount on Form 1040, Line 73?
A. $330.
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