Elderly Family Medical Expenses Deduction.
Medical expenses for any "Elderly Family" as defined in RD Instruction 1980-D, Section 1980.302 (a)
. This includes medical expenses for any household member the applicant/borrower anticipates incurring over the ensuing 12 months "and" which are not covered by insurance. Examples of said expenses are: dental expenses, prescription medications, medical insurance premiums, eyeglasses, hearing aids, home nursing care, monthly payments on accumulated major medical bills and full time nursing or institutional care which "cannot" be provided in the home for the member of the household.
The deduction is the amount by which the aggregate allowable medical expenses of the household, combined with eligible disability expenses of the household, exceeds 3 percent of the qualifying household members Gross Annual Income (GAI).
Example: Qualifying household medical expenses are $3,200. GAI is $15, 500. 3% of GAI is $465. Allowable deduction is $2,735 ($3,200 minus $465)