I have a stupid question. I was in a car accident in October of 2006. Not having medical insurance, I incured quite a bit of medical bills. Also, since I have such a meager income at the moment, part of my hospital bill was dissmissed. My income only allows me to use a payment plan to pay off these bills. So my question is, do I claim the entire bill on my taxes, or do I claim just what I paid in 2006?? Thanks for your help!
2007-04-16 12:56:09 · 5 answers · asked by wickerone 1 in Business & Finance ➔ Taxes ➔ United States
Most individuals file their tax return on the cash basis, which means you can deduct the portion of medial expenses you paid in 2006. The part you pay in 2007 you can deduct on the next return. The problem is that medical expenses are deductible only to the extent they exceed 7.5% of your adjusted gross income, so it is to your advantage to deduct the entire bill in 2006. If you claim the entire deduction in 2006, you are filing on an accrual basis, which is legal. Calculate which approach is most favorable and use it. The IRS will not question it if you have documentation of the expenses incurred, such as the hospital bill.
2007-04-16 13:05:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Only what you actually paid in 2006 and were not reimbursed for. You don't claim anything for the portion of the bill that was dismissed.
2007-04-16 20:26:43 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You can only claim teh expenses you actually paid in 2006.
2007-04-16 19:59:17 · answer #3 · answered by Mark S 5 · 0⤊ 0⤋
only what you actually paid or charged to a credit card (if anything)
2007-04-16 20:49:20 · answer #4 · answered by xxxamazedxxx 2 · 0⤊ 0⤋
Only what you actually paid.
2007-04-16 19:59:28 · answer #5 · answered by Outside the box 6 · 0⤊ 0⤋