Income tax health care cost deduction question.?

Question

My wife and I had a child in October that was 2 months premature. As a result I'm sure the hospital costs are going to be a bit high even with insurance. Our daughter just came home 2 weeks ago but we have not seen the bill yet. My question is, if the bills come in after the first of the year, do I take the deduction on 2009 when the services were rendered or in 2010 when the bill was payed? If we pay the hospital in installments over time, would that affect the answer? Thanks.

Update:

Payed... hehe. Remember kids, don't drink and type. Thanks Gary.

garyg7 · Accepted Answer

You are a cash basis taxpayer so the medical expenses are based on when the bills are paid (not "payed").

I hope this helps.
Gary

Anonymous · Answer

Businesses treat the money they spend on health care for their employees as a expense so do not pay taxes on it, and unlike wages they do not have to pay the SS and Medicare payroll tax either nor are the employees required to pay taxes on the the employers share as they would it it were wages, This saves Businesses over 300 billion a year in federal taxes.

Anonymous · Answer

You can only claim a deduction for medical expenses for the year in which you actually pay them.

tro · Answer

you declare the medical expenses when you pay them
if you put any on a credit card, you can declare them when you make the charge(you have just changed one note payable to another)

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Income tax health care cost deduction question.?

4 Answers