A is corrent. The requirement is to determine the amount that Jay can claim as deductible medical expenses. The medical expenses incurred by a taxpayer for himself, spouse, or a dependent are deductible when paid or charged to a credit card. The $5,000 of medical expenses for his dependent daughter are deductible by Jay for 2012 when charged on Jay’s credit card. It doesn’t matter that payment to the credit card issuer had not been made when Jay filed his return. Expenses paid for the medical care of a decedent by the decedent’s spouse are deductible as medical expenses in the year they are paid, whether the expenses are paid before or after the decedent’s death. Thus, the $3,200 of medical expenses for his deceased spouse are deductible by Jay when paid in 2012, even though his spouse died in 2011.
B is incorrect. Deductible medical expenses total $8,200.
C is incorrect. The $5,000 credit card charge is deductible for 2012.
D is incorrect. The $3,200 paid for his deceased wife is deductible for 2012.
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