I have a simple trust reporting a majority of income (interest and dividends) and it's passed onto the 100% beneficiary. If the trust pays for all medical costs for the beneficiary, can this medical cost be passed onto the beneficiary as a tax deduction to be used on their Schedule A (assuming the costs exceed the 7.5% AGI)? Or does the money have to be passed to the beneficiary's personal checking account to then be paid out for the medical costs to then qualify for the personal tax deduction? Please point to an IRS code section.