EIP 3 and medical deductions

Mar 16, 2022 Last reply: 4 years ago 2 Replies

Helping 66 year old neighbor with taxes again this year. (Blind leading the blind). Using eztaxreturn.com .



He received two stimulus checks in 2021. The website says he is entitled to a third payment of $1400 because in 2021 he was a U.S. citizen, was not a dependent of another tax payer and he has a valid SSN. The $1400 ("recovery rebate credit") was put in Other Taxes and Credits on the electronic return. Is this correct?



He has health insurance through his place of work. He had medical issues during 2021 resulting in about $2000 in taxi charges to and from many medical appointments. He has a receipt for every taxi trip. He was not reimbursed for any of the taxi fares. These are valid medical deductions, right, if he is able to itemize?



Should I now review all his medical Explanation of Benefit documents and medical bills and tally up all his nonreimbursable charges, e.g., medical deductibles, coinsurance (he reached, then exceeded, both ceilings) and put this total along with the taxi fares total on the medical expenses line on his return? Just the total of all of it? Do I need to attach an explanation or copies of EOBs or bills to prove this? I don't think there is a way to attach anything through eztaxreturn.com. Should I just put the total in and just wait until the possible IRS audit?



Thank you in advance for any assistance here.


This goes on line 30 of page 2 of form 1040.

Yes

Yes, but: For medical deductions to produce any tax benefit at all, he has to be better off with itemized deductions than with the standard deduction (is he?), and only the excess of the total amount of the qualified medical expenses over 7.5% of his AGI counts in.

Or live in NJ where the state medical deduction begins at 2% of NJ gross income.

Ira Smilovitz, EA Leonia, NJ

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