Medical expenses deduction question
February 5, 2015 10:08 AM   Subscribe

I went up to my deductible in my health insurance plan - So I had a $4,500 total bill. However, I'm on a repayment plan with the hospital. If I have was billed this amount during 2014, but am still repaying it, is this amount considered "out of pocket expenses"? If I only include the portion that I paid under the repayment plan, I don't qualify for the deduction (yet I'm still paying the big silly amount so it feels like I should.)
posted by mermily to Work & Money (4 answers total) 1 user marked this as a favorite
IRS says you can only deduct what you paid during the calendar year: "You can only include the medical expenses you paid during the year and you can only use the expenses once on the return." 2nd Cite.
posted by ThePinkSuperhero at 10:12 AM on February 5, 2015

Don't forget, though, that you may only deduct medical expenses that exceed 10 percent of your AGI.
posted by janey47 at 10:22 AM on February 5, 2015 [1 favorite]

thanks! They exceed 10 percent of my AGI. I ended up taking the standard deduction.
posted by mermily at 2:36 PM on February 5, 2015

This is my least favorite part about Healthcare deductibles vs IRS deductions.

Last year we incurred a TON of medical bills in November, but since it was so late in the year and the insurance company (as usual) denied everything the first time and it took several months to settle the bills and it ended up that half were paid in 2013 and half in 2014, we were NOT able to claim any of it as IRS deductions because ONLY the dates of the actual payments count. The grand total would have met the 10% rule, but since it was paid half/half each year, we didn't qualify for the deductions.

For the IRS, it doesn't matter what dates the service was rendered or bills were created; it only matters what date you paid them.
posted by CathyG at 12:39 PM on February 6, 2015

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