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January 21, 2023
Question

What documentation is needed to deduct medical expenses?

  • January 21, 2023
  • 2 replies
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This will be our first time seeing if our medical expenses can be deducted. What is needed in order to do this? Is there a form that the medical/offices/hospital gives you with what you paid them? Or so I have to get each payment individually and enter them?

2 replies

VolvoGirl
Employee
January 21, 2023

You use your own records, receipts and bank or credit card statements.   Add up what you actually paid and were not reimbursed for.   And don't forget your health & dental insurance premiums.

Only what you actually paid during the year.  Medical is deductible the year when you pay it.  If paid by check, it would be when you gave the provider a check. You can only deduct the payments you made but not any interest.

 

If by credit card, it would be when the charge was made. Putting it on your credit card is the same as paying it.  You can deduct the full amount.  But you can't deduct any interest or penalties you paid on it.

 

If you put it on a credit card or took out a loan you can deduct the full amount even though you pay it over time. If you are on a payment plan with the hospital or doctor, etc. then it's only the amount you pay. Either way you only can deduct the principal amount, not any interest.

 

But You can only deduct the amount of unreimbursed Medical Expenses you actually paid over 7.5% of your AGI.  And then all your itemized deductions has to be more than the standard deduction to get any benefit (so you would only be getting the benefit of the amount that puts you over the standard deduction).

 

 

 

SteamTrain
Employee
January 22, 2023

...and if you are entering your medical expenses that were not reimbursed...you just enter all those out-of-pocket $$ in the software....the software will then determine at what point they exceed 7.5% of your AGI and will use just those $$ over 7.5%......if you end up being able to itemize.

 

Of course, if you haven't entered all your income yet, that 7.5% level in absolute $$ will keep moving as you enter more income...but the software tracks it.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Employee
January 22, 2023

You don't send any proof to the IRS.  But keep your receipt, statements, and other proof for 3 years after filing in case of audit.