Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 59-66

1959-1 C.B. 60

Sec. 213

IRS Headnote

Amounts paid for the medical care of a taxpayer, her husband and their son and daughter, all residing in a non-community property state, with funds deposited in a joint checking account in which the husband and wife have an equal interest are presumed to be paid equally by the taxpayer and her husband for the purpose of computing the deduction, allowable under section 213 of the Internal Revenue Code of 1954, that each is entitled to take into account in the filing of a separate Federal income tax return. Full Text

Rev. Rul. 59-66

Advice has been requested whether the taxpayer, who files a separate Federal income tax return, may claim as a deduction under section 213 of the Internal Revenue Code of 1954 the expenses paid from a joint checking account during the taxable year for the medical care of herself, her husband and her children.

The taxpayer and her husband reside in a noncommunity property state where they maintain a joint checking account into which they deposit their separate earnings. In most instances, doctors' and dentists' bills, as well as the cost of medicines and drugs, are paid for by checks drawn by the taxpayer upon their joint account. The taxpayer and her husband state that when these items are paid for by checks drawn by the husband upon their joint account, it is with the understanding that he is using his wife's separate funds for this purpose. There was no further evidence that these items were paid for by the taxpayer alone.

Section 213 of the Code allows as a deduction (subject to certain limitations) expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse and his dependents, as defined in section 152 of the Code.

A dependent, as defined in section 152 of the Code, includes a son or daughter of the taxpayer over half of whose support, for the calendar year in which the taxable year of the taxpayer begins, was received from the taxpayer (or is treated under subsection (c) of that section as received from the taxpayer.)

When a husband and wife elect to file separate Federal income tax returns, each becomes a separate and distinct taxpayer and each will be allowed a deduction under section 213 of the Code only for expenses actually paid by him or her for the medical care of that person or his or her spouse or dependents as defined in section 152 of the Code. Where the husband and wife maintain a joint checking account in which each apparently has an identical interest, there is a presumption that the expenses paid from such account for medical care are paid equally by each of the two parties. This presumption may be rebutted by competent evidence to the contrary and one of the parties may claim and be allowed a deduction for the expenses paid for the medical care of that party, his or her spouse or a person qualifying as that party's dependent if such expenses can be shown to have been paid by that party alone. See Mark B. Higgins v. Commissioner , 16 T.C. 140.

Accordingly, it is held that amounts paid for the medical care of a taxpayer, her husband and their son and daughter, all residing in a noncommunity property state, with funds deposited in a joint checking account in which the husband and wife apparently have an equal interest are, in the absence of competent evidence to the contrary, presumed to be paid equally by the husband and wife for the purpose of computing the deduction allowable under section 213 of the Code, when the husband and wife elect to file separate Federal income tax returns.