(1) Treatment of expenses paid after death
For purposes of subsection (a), expenses for the medical care of the taxpayer which
are paid out of his estate during the 1-year period beginning with the day after
the date of his death shall be treated as paid by the taxpayer at the time incurred.
Paragraph (1) shall not apply if the amount paid is allowable under section
2053 as a deduction in computing the taxable estate of the decedent, but
this paragraph shall not apply if (within the time and in the manner and form prescribed
by the Secretary) there is filed—
(A) a statement that such amount has not been allowed as a deduction under
(B) a waiver of the right to have such amount allowed at any time as a deduction
(1) The term “medical care” means amounts paid—
(A) for the diagnosis, cure, mitigation, treatment, or prevention of disease,
or for the purpose of affecting any structure or function of the body,
In the case of a qualified long-term care insurance contract, only eligible long-term care premiums (as defined in paragraph
(10)) shall be taken into account under subparagraph (D).
(B) for transportation primarily for and essential to medical care referred
to in subparagraph (A),
(C) for qualified long-term care services, or
(D) for insurance (including amounts paid as premiums
under part B of title XVIII of the Social Security Act, relating
to supplementary medical insurance for the aged) covering
medical care referred to in subparagraphs (A) and (B) or for any
qualified long-term care insurance contract.
(2) Amounts paid for certain lodging away from home treated as paid for medical
care.— Amounts paid for lodging (not lavish or extravagant under the circumstances)
while away from home primarily for and essential to medical care referred to in
paragraph (1)(A) shall be treated as amounts paid for medical care if—
(A) the medical care referred to in paragraph (1)(A) is provided by a physician
in a licensed hospital (or in a medical care facility which is related to, or the
equivalent of, a licensed hospital), and
(B) there is no significant element of personal pleasure, recreation, or
vacation in the travel away from home.
The amount taken into account under the preceding sentence shall not exceed $50
for each night for each individual.
(3) Prescribed drug.— The term “prescribed drug” means a drug or biological
which requires a prescription of a physician for its use by an individual.
(4) Physician.— The term “physician” has the meaning
given to such term by section 1861(r) of the Social Security Act.
(5) Special rule in the case of child of divorced parents, etc.— Any
child to whom section
152(e) applies shall be treated as a dependent of both parents for purposes
of this section.
(6) In the case of an insurance contract under which amounts are payable
for other than medical care referred to in subparagraphs (A), (B), and (C) of paragraph
(A) no amount shall be treated as paid for insurance to which paragraph (1)(D)
applies unless the charge for such insurance is either separately stated in the
contract, or furnished to the policyholder by the insurance company in a separate
(7) Subject to the limitations of paragraph (6), premiums paid during the
taxable year by a taxpayer before he attains the age of 65 for insurance covering
medical care (within the meaning of subparagraphs (A), (B), and (C) of paragraph
(1)) for the taxpayer, his spouse, or a dependent after the taxpayer attains the
age of 65 shall be treated as expenses paid during the taxable year for insurance
which constitutes medical care if premiums for such insurance are payable (on a
level payment basis) under the contract for a period of 10 years or more or until
the year in which the taxpayer attains the age of 65 (but in no case for a period
of less than 5 years).
(B) the amount taken into account as the amount paid for such insurance shall
not exceed such charge, and
(C) no amount shall be treated as paid for such insurance if the amount specified
in the contract (or furnished to the policyholder by the insurance company in a
separate statement) as the charge for such insurance is unreasonably large in relation
to the total charges under the contract.
(8) The determination of whether an individual is married at any time during
the taxable year shall be made in accordance with the provisions of section
(d) (relating to determination of status as husband and wife).
(9) Cosmetic surgery.—
(A) In general.— The term “medical care” does not include cosmetic
surgery or other similar procedures, unless the surgery or procedure is necessary
to ameliorate a deformity arising from, or directly related to, a congenital abnormality,
a personal injury resulting from an accident or trauma, or disfiguring disease.
(10) Eligible long-term care premiums.—
(B) Cosmetic surgery defined.— For purposes of this paragraph, the
term “cosmetic surgery” means any procedure which is directed at improving the patient’s
appearance and does not meaningfully promote the proper function of the body or
prevent or treat illness or disease.
(A) In general.— For purposes of this section, the
term “eligible long-term care premiums” means the amount paid during
a taxable year for any qualified long-term care insurance contract
covering an individual, to the extent such amount does not exceed
the limitation determined under the following table:
(11) Certain payments to relatives treated as not paid for medical care.—
An amount paid for a qualified long-term care service provided to an individual shall be treated as not paid for medical
care if such service is provided—
In the case of an individual with an attained age before the
The limitation close of the taxable year of: is: 40 or
less $ 200 More than 40 but not more than 50 375
More than 50 but not more than 60 750 More than 60 but
not more than 70 2,000 More than 70 2,500.
(i) In general.— In the case of any taxable year beginning in a calendar
year after 1997, each dollar amount contained in subparagraph (A) shall be increased
by the medical care cost adjustment of such amount for such calendar year. If any
increase determined under the preceding sentence is not a multiple of $10, such
increase shall be rounded to the nearest multiple of $10.
(ii) Medical care cost adjustment.— For purposes of clause (i), the
medical care cost adjustment for any calendar year is the percentage (if any) by
(I) the medical care component of the Consumer Price
Index for August of the preceding calendar year, exceeds
(II) such component for August of 1996.
The Secretary shall, in consultation with the Secretary of
Health and Human Services, prescribe an adjustment which the
Secretary determines is more appropriate for purposes of
this paragraph than the adjustment described in the
preceding sentence, and the adjustment so prescribed shall
apply in lieu of the adjustment described in the preceding
(A) by the spouse of the individual or by a relative (directly or through
a partnership, corporation, or other entity) unless the service is provided by a
licensed professional with respect to such service, or
For purposes of this paragraph, the term “relative” means an individual bearing
a relationship to the individual which is described in any of paragraphs (1) through
(8) of section
(a). This paragraph shall not apply for purposes of section
(b) with respect to reimbursements through insurance.
(B) by a corporation or partnership which is related to the individual.
Any expense allowed as a credit under section
21 shall not be treated as an expense paid for medical care.