Under the 7.5% of AGI rule, which expense is considered a tax deductible medical expense?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Under the 7.5% of AGI rule, which expense is considered a tax deductible medical expense?

Explanation:
The key idea is that medical expenses are deductible only if they are for medical care and exceed 7.5% of your AGI, and they must be unreimbursed and part of itemized deductions. Long-term care insurance premiums count as medical expenses and are deductible to the extent they exceed that 7.5% floor (with any age-based limits). Gym memberships and cosmetic surgery are generally not considered deductible medical expenses, and life insurance premiums are not deductible as medical expenses. So the long-term care insurance premiums are the deductible medical expense under this rule.

The key idea is that medical expenses are deductible only if they are for medical care and exceed 7.5% of your AGI, and they must be unreimbursed and part of itemized deductions. Long-term care insurance premiums count as medical expenses and are deductible to the extent they exceed that 7.5% floor (with any age-based limits). Gym memberships and cosmetic surgery are generally not considered deductible medical expenses, and life insurance premiums are not deductible as medical expenses. So the long-term care insurance premiums are the deductible medical expense under this rule.

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