If I have a expense in 2006 and don't get billed for it till 2007 can I still use it on itemized deductions on Schedule A. We will be over the 7.5% of income. So like to get all we can.
2006-12-18 05:57:49 · 5 answers · asked by toddrws 1 in Business & Finance ➔ Taxes ➔ United States
Can I predate a check for something that I know will be billed in Jan for 2006 so I can itemize it.
2006-12-19 01:33:20 · update #1
i suggest calling and finding out how much you owe. or if you can estimate, make a payment. for example , write a check now for $5000 and send it in. this is legal as long as you mail it. dont wait til 2007 and then back-date the check. pay now!
2006-12-20 23:50:06 · answer #1 · answered by tma 6 · 0⤊ 1⤋
You can only deduct it in the year you actually pay it. The exception to that is if you pay by credit card, it counts for when you charge it to your card, not when you pay it off.
If you won't be over the 7.5% in 2007 also, then you'd lose the deduction. If you know the amount, you could prepay it - write the check and mail it by 12/31/06. If you're not sure of the amount, the provider's office should be able to give you the info.
I'd stay away from predating a check - not legal, plus if you'd happen to get audited, could be obvious from having a length of time between check date and the provider cashing it.
2006-12-19 13:07:23 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
We, as individuals, are cash basis tax payers. So you deduct it at the time you pay.
If you pay by cash or check in 2007, you deduct it in the 2007.
But, if you pay by credit card, you deduct it in the year you made the charge. A credit card is considered like paying cash. So even if you didn't pay your credit card bill until 2007, as long as you charged the medical bill in 2006, it's deductible in 2006.
2006-12-18 16:01:37 · answer #3 · answered by Anonymous · 2⤊ 0⤋
It goes based upon when you pay.
If you won't be billed until 2007 I would expect you won't pay until 2007 so it would count as a 2007 expense.
2006-12-18 14:04:34 · answer #4 · answered by nova_queen_28 7 · 1⤊ 0⤋
As above states, it is when paid. If you pay by credit card it is when you charge it to your card not when you pay the credit card company.
Also don't forget to include your medical miles, parking and other medical transportation charges in the deduction.
2006-12-18 14:16:42 · answer #5 · answered by waggy_33 6 · 1⤊ 0⤋