Home equity loans, whose proceeds are not used for these purposes, are not included in this exclusion Individual Deductions – For AGI II. Personal automobile calculated by miles (0.19/mile in 2008) IV.
* Nursing home expenses qualify if the primary reason is for medical reasons.
* Capital expenditures may qualify if it’s an (1) advice of a physician, (2) primarily used by the patient alone, (3) reasonable. An expense can only be taken to the extent that it exceeds the increase in the value of the property.
Deductible for taxpayer, spouse, and dependent (gross income and joint return tests do not apply for this purpose) Medical expenses is the only deduction allowed for payments made on behalf of someone other than the taxpayer * Uninsured expenses above 7.5% of AGI is deductible * Deductible items include dental, medical, and hospital care; prescription drugs; equipment such as wheelchairs, crutches, eyeglasses, hearing aids, contacts; transportation for medical care; medical insurance premiums (for insurance covering the costs of prescription drugs are deductible; for insurance against loss of earnings, limbs, sight, hearing and disability are not deductible); qualified long-term care expenses and insurance; alcohol and drug rehabilitation; weight-reduction programs if as part of medical treatment.
* Non-deductable: funeral, burial, and cremation expenses; nonprescription drugs (except insulin); bottled water; toiletries; cosmetics; health spas; stop-smoking clinics; unnecessary cosmetic surgery.
* Qualifying automobile expenses: 0.19 (2008) per mile plus parking and tolls * Lodging: 50 per night, including person who is required to travel with.