Mar
21
If surgery was in ’08, but billed in ’09, in which tax year is it deductable?
ByI had surgery to remove a kidney stone in September 2008, however, one bill was not received until January 2009. So my question is, in which tax year can this be used as a medical deduction? The year the surgery was done of the year the bill was paid? Thank you.
3 Comments
March 21st, 2010 at 2:15 pm
The tax year in which you paid it.
March 21st, 2010 at 3:05 pm
If you’re going to deduct it as a medical expense, the year that you actually paid the money is the amount you can deduct.
To get even better tax breaks, consider participating in a Health Care Flexible Spending Account if your employer offers one.
March 21st, 2010 at 3:15 pm
Taxes are on a cash basis- that means that you take deductions and claim income in the year in which you actually handed over the cash or received the cash.
On a second note, medical expenses are only deductible over 7.5% of AGI, and only if you itemize. So, if you only paid a percent and insurance covered the rest, you may not even be eligible for the deduction at all. For example, if your adjusted gross income was $40,000, you’d have to itemize and have over $3,000 worth of medical expenses. Only the amount over the $3,000 would be deductible.
When I do individual returns, people always give me their medical information. 9 times out of 10, I can’t use it.
Good luck. :0)