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Lv 6

Does medical expense deduction need to be reduced for money raised via Gofundme?

I had out of pocket expense of around $15,000 when purchasing a new wheelchair. I raised about $10,500 through go fund me. What can I legally deduct as medical expense on my tax return?

7 Answers

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  • Shay
    Lv 7
    1 year ago
    Favorite Answer

    This is a copy/paste from a google search:

    In general, you can deduct qualified, unreimbursed medical expenses that are more than 7.5% of your adjusted gross income in 2019. So, for example, if your adjusted gross income is $40,000, anything beyond the first $3,000 of your medical bills — or 7.5% of your AGI — could be deductible.

    Money given to you as a gift is still your money and not "reimbursed" by any kind of medical insurance.

    Remember that when you itemize deductions like medical expenses, you can't take the standard deduction.  If your itemized list is not higher than your standard deduction, then it is always better to skip itemizing and just use the standard deduction.

  • 1 year ago

    If you SPENT $15,000 and raised $10,500 on gofundme, you had an out of pocket expense of $4,500.

  • ?
    Lv 7
    1 year ago

    Money is considered fungible.  After you received the gift, the money was to use as you please.  All $15,000 is deductible.

  • ?
    Lv 7
    1 year ago

    $4500, but your medical deduction has to exceed a certain percentage of your income.

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  • DeAnne
    Lv 7
    1 year ago

    Doesn't insurance or Medicare pay for that?

  • Anonymous
    1 year ago

    All of the money you received is personal gift with no tax issues for you at all. 

    You bought the wheelchair with your own money.   If it's a deductible expense, deduct it.   You have the invoice and proof of payment, right?

    Do you have enough deductions to make itemizing worthwhile?   You can only deduct medical expenses that are more than something like 7.5% of your AGI.   I'm sure someone will be along to correct my numbers if I'm off...

  • 1 year ago

    Deduct the entire amount.

    The $10.5k were "gifts" and deductible expenses paid with gifted money is still deductible.

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