When Makai passed away in $2021,$ he had a few medical expenses that he had incurred but not yet paid. His personal representative, Carl, paid all the medical expenses from the estate's assets before the end of the year. How will Carl report these expenses on the final tax return?

Carl can only report the medical expenses paid prior to Makai's death on the final Form $1040.$ A waiver should be attached to the return stating the expenses are reported on the Form $1040.$

Carl may deduct the medical expenses paid prior to Makai's death and the expenses he paid after his death on the final Form $1040.$ He will need to attach a statement to the return that explains he is waiving the right to report the medical expenses on the Form $706.$

Carl must report all the medical expenses on Form $706$ because Makai died before they were paid. A waiver is not necessary.

Carl can report the medical expenses paid prior to Makai's death on Form $1040.$ The medical expenses paid after he passed away are lost. They may not be deducted on any return.