[geekyguy]

I followed few threads here on Parents visiting from India and whether they were eligible for applying ITIN as dependents. The ATLANTA user has provided excellent explanations regarding the same and based on that probably I want to re-iterate/re-confirm few things:

1. If the parents (who are retired back in India) stayed with us for about 5 months (150 days) can they be considered as dependents?
Even if that doesn't fall under the 183 day cap, we had the in-laws visit for another 30 days in 2008 Which makes it to 180 but falling short of 3 days.
2. Can their expenses be included in the itemized deductions (eg. We paid around 6K for both their airfares from/to India)?
3. Also we brought insurance for about 2K for them as well.
4. We had to take them to ER once and I took a tab of about 500$ and can that be deducted?
5. They purchased computers and other electronic items as part of gifts. Can these all be considered as itemized deductions which we paid from our after-tax money.
6. I pay for my own medical insurance of about 1K a month and should that be included in the itemized deductions or can I show that in a different section? I hope that's deductible.
7. Also we have 2 cars and spent about 3K in maintenance during 2008. Can that be deducted as well?
8. Does paying INS fee for visa/immigration document renewals (we paid another 2K for the attorney & the INS last year) qualify for tax deductions?
9. Buying books, educational materials, software's, 900$ laptop can these all be deducted as educational expenses?
10. Valentine's day gifts to wife (Jewelery etc) can that be deducted as well? -- I think in the movie Shawshank Redumption Tim says a one time gift is allowed. :)
11. Paying copay, out of pocket expenses for doctor visits, prescription medications be deducted?
12. We had a baby in 2008 but the hospital didn't send us a bill in 2008 and we got a bill for 1600 (after insurance payment) this January, which I paid. Can this be included in 2008 return as deduction?

I know I've asked too many questions on deductions, I'd greatly appreciate your reply.

Thanks & Regards!

[AtlantaTaxExpert]

1) To be claimed as dependents, your parents have to meet the dependency criteria, i.e. you must provide more than HALF of their total support. Further, they have to meet the Substantial Presence Test. If the SPT spreads over two years, the days in the first year is CUT by two-thirds. In other words, the 150 days in 2007 is cut to 50 days for SPT purposes if carried over to 2008.

2 -5) Negative.

6) Medical insurance premiums IS a valid itemized medical deduction IF you are a RESIDENT alien. Of course, all of your medical costs must exceed 7.5% of your Adjusted Gross Income (AGI) before they begin to be deductible.

7-8) Negative.

9) These items MAY be deductible as employee business expenses, which is an itemized deduction, but that is subject to a 2% AGI floor as well.

10) Negative.

11) These are valid medical deductions, but they have to beat the 7.5% AGI floor.

12) Yes, because you INCURRED the expense in 2008.