Question

Which of the following costs are deductible as an itemized medical expense?

A. The cost of prescription medicine and over-the-counter drugs.

B. Medical expenses incurred to prevent disease.

C. The cost of elective cosmetic surgery.

D. Medical expenses reimbursed by health insurance.

E. None of these costs is deductible.

Answer 1

The deductible medical expenses include the cost of prescription medicine and over-the-counter drugs, as well as medical expenses to prevent disease. Elective cosmetic surgery is only deductible in specific cases, and expenses reimbursed by health insurance are not deductible. The correct option is B.

Step-by-step explanation:

The question pertains to which costs are deductible as an itemized medical expense.

Amongst the given options, the cost of prescription medicine and over-the-counter drugs, as well as medical expenses incurred to prevent disease, can be considered deductible as they fall under medical care (which includes prescription drugs, medical supplies, physicians' services, eyeglasses, eye care, and hospital services).

Elective cosmetic surgery is generally not deductible unless it is needed to improve or correct a deformity arising from a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.

Lastly, when medical expenses are reimbursed by health insurance, they are not deductible because the policyholder does not bear the out-of-pocket expense. The correct option is B.