Final answer:
Rita may deduct her $7,000 surgery cost if her total unreimbursed medical expenses exceed 7.5% of her adjusted gross income when itemizing deductions. The surgery being lifesaving or the existence of a high deductible health plan doesn't influence deductibility, and there's no $5,000 limit on medical expense deductions.
Step-by-step explanation:
When it comes to tax deductions for medical expenses, the IRS allows individuals to deduct unreimbursed medical expenses that are more than 7.5% of their adjusted gross income. Since Rita had a major medical expense due to her back surgery in February 2020, she can consider this cost for a deduction when she itemizes her tax deductions. However, this is based on the assumption that her total medical expenses for the year exceed 7.5% of her adjusted gross income. It is important to note that there is no specific limit such as a $5,000 cap on medical expense deductions, and the fact that she has a high deductible health plan does not affect the deductibility of her surgery expenses. The nature of the surgery (whether it is lifesaving or elective) does not directly influence the deductibility either.
If Rita has other eligible medical expenses within the same tax year, it would be advantageous to incur them in the same year as the surgery to maximize her medical expense deduction. Bundling medical costs in a single year can help exceed the 7.5% threshold and increase the deduction amount. It's also important to consider that tax laws can change, and tax advice should be sought from a qualified tax professional or the IRS's latest guidelines.