When you write off your doctor bills on your taxes is it how much they cost or how you paid?

Answer 1

The amount you "write-off" on Line 1 of the 1040 Schedule A are amounts YOU PAY to the medical institution during the calender year. Paying with a credit card or other type of loan is the same as paying the entire amount. You don't need to pay off the credit card in the same calendar year. Do not write off amounts reimbursed to you by insurance.

Example:

December 2004 you have surgury. The bill is $16,000.

1) You pay the hospital $1,000 per month starting in December. Enter on Schedule A $1,000 in 2004, $12,000 in 2005, and $3,000 in 2006.

2) You pay the whole bill by using your credit card in December 2004. Enter $16,000 for 2004. It doesn't matter if you pay off the entire credit card in 2004, or make payments for many years afterwards. All that matters is when the hospital got paid.

Don't include any amounts in which you get reimbursed. If you get reimbursed in a year after you already claimed the expense, you have to recapture this reimbursement. This is relatively rare.

Finally, don't forget to include ALL your medical expenses. The list of what you can write off is a lot more than people realize. Please refer to IRS publication 502 (link below) for a complete list.

Answer 2

What you paid, minus 7.5% of your adjusted gross since that much isn't deductible. Anything you didn't actually pay, whether insurance paid it or it was billed to you and just isn't paid yet, isn't deductible.

Answer 3

Its how much you paid-- if your healthy insurance paid 80% you can only claim 20%.