Report the deduction on the Schedule 'A' - even if the parent did not meet the gross income requirements for the dependency exemption, the parent will still meet the definition of a dependent for purposes of medical expenses paid according to CFR 26 Section 213(a).
To answer a specific question, a parent's W-2 earnings will not prevent you from claiming a deduction on your taxes for the amount you paid for necessary medical expenses on behalf of your parent. A taxpayer's medical expenses include expenses paid for a person who meets the §152 definition of a dependent. However, §213(a) expands the definition to also include:
- a dependent child who filed a joint return with a spouse,
- a relative who would have qualified except for exceeding the income level, or
- anyone who would have qualified as the taxpayer's dependent but was claimed as a dependent on another person's return.
- Medical expenses paid for a dependent claimed under a multiple support agreement are also deductible [Reg. §1.213-1(a)(3)].
John R. Dundon, EA - 720-234-1177 - jddundon@comcast.net - http://prep.1040.com/jd/ - Enrolled with the United States Department of Treasury to Practice before the IRS - Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent - I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.