No. The act maintains the exclusion for the first $1,000, but, if a payment of $1,000 is made and the exclusion comes into effect, a choice is out of the question. You cannot choose either the exclusion or the deduction. With an exclusion, there would be no deduction. The way it is drafted, there would be no deduction on top. At the moment a payment is made, no deduction is possible.
On June 12th, 2008. See this statement in context.