[Anonymous]

Hey All,

I am studying for REG and purchased the Ninja Audio (as well as the Ninja Notes) and was listening through the Individual Taxation section and have a question…

For the topic of medical expense deduction, specifically paying the medical expenses of others, I know that the person you are paying for (in order to take the deduction) must meet the Qualifying Relative criteria: Support > 50%, Under a specific gross income amount, Prevented from filing a joint return, Only N. American citizens, and closer than a cousin (parent, sibling) OR a non-relative that lives with you for the whole year.

In the Ninja Audio Track 1 (Individual Taxation) at 16:07, Jeff gives the example “So if your cousin from Canada comes to live with you and you pay more than 50% of their expenses, and you pay their medical bills, you can’t deduct it”.

So, now I’m confused. Can someone please clarify?

[jcw1503]

At first I had the same thought as you, but the more I thought about it, (this is not his response, just my opinion) he says comes to live with you..To me that says that he was not living with you the entire year, that he came during the year to live with you. Again, this is my opinion and not Jeff's.

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[Anonymous]

funny I thought the SAME thing as you did! BUT look at what you wrote above “closer than a cousin” …. and then what Jeff says “if your COUSIN from Canada comes… ” you won't be able to deduct them because it's your cousin – if it was a parent or a sibling that would be OK not a cousin.

[Anonymous]

But if they are a cousin, and they do live with you (assuming for the whole year) than you can deduct it… is my understanding.

[Anonymous]

no because it is a NON relative that lives with you for a whole year – a cousin is a relative

[Anonymous]

I'm pretty sure the “T” in the SUPORT mnemonic from Becker for a Qualified relative is a non-relative taxpayer that lives with you for the whole year. Either they are a relative closer than a cousin OR a non-relative tax payer that lives with you (for the whole year). It doesnt make sense that the tax laws would rule out cousins but include a random bum off the street?

[JD_CPA]

@aanderson04

I'm with you on this one. I have the Becker book in my hands and it says that cousins, foster parents and bums are OK if they live with you for the entire year.

However for medical expenses to be deducted the “Under a specific gross income amount, Prevented from filing a joint return” provisions are not required.

Becker R2-19

Jeff ?

[Anonymous]

I see what you're saying – looked back over Becker and R1-13 says “no kissing cousins” i.e. no cousins for the relative test but that they move down to the taxpayer lives with the individual (if non-relative) for the whole-year – My best guess is the same as jcw1503 when Jeff says “comes to live with you” he means didn't live with you for the whole year… Hopefully we can get Jeff to weigh in here!

[jeff]

Well – I thought you were all smoking something because I went back to the audio script and it reads:

“➢ So, if your cousin from Canada comes to live with you and you pay for more than 50% of their expenses and you pay their medical bills, you can deduct it.”

… so then I listen to the audio and I clearly set it all up:

➢ The person Must be a citizen of North America

➢ They must live with you unless they are your parent or a relative closer than a cousin, so essentially a parent or sibling.

➢ You also Must provide more than 50% of their support

… and then say “can't” deduct it instead of “can” as it's written.

All of that to say, I messed up and can't read my own writing 🙂

You *can* deduct it. Sorry for the mess up.

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Anonymous]

ha! thanks for clearing it up Jeff apparently we weren't the ones smoking 😉

[Author]

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