ASK KIM
Deducting Mom's Medical Expenses
by Kimberly Lankford

Can I deduct the funeral expenses for my mom, who died this year? I paid all of her medical expenses and claimed her as my dependent for years.

Funeral expenses are not deducible. But if your mother qualified as your dependent while she was alive, you can claim an exemption for her. And you can include any of her medical expenses that you paid when you calculate your 2004 medical-expense deduction.

To claim the deduction, your out-of-pocket medical expenses must exceed 7.5% of your adjusted gross income. That means if you're earning $50,000 per year, you can only deduct medical costs beyond $3,750.

Once you pass that threshold, you can write off other nonreimbursed expenses that are usually too small to qualify, such as dental treatment, eye exams, contact lenses, glasses, a portion of premiums for qualified long-term care insurance policies (the amount varies by age), prescription drugs not covered by insurance, the cost of transportation to receive medical care (12 cents per mile if you drive) and many other expenses.

For a comprehensive list of which expenses you can deduct, see IRS Publication 502 Medical and Dental Expenses.

You must itemize your taxes to claim this deduction, which only makes sense if your deductible medical expenses plus other deductions exceed the 2004 standard deduction -- $9,700 for couples or $4,850 for singles.

For more information about exemptions and who can be considered a dependent, see IRS Publication 501 Exemptions, Standard Deduction and Filing Information.