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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
- ShayLv 71 year agoFavorite 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.
- STEVEN FLv 71 year ago
If you SPENT $15,000 and raised $10,500 on gofundme, you had an out of pocket expense of $4,500.
- ?Lv 71 year ago
Money is considered fungible. After you received the gift, the money was to use as you please. All $15,000 is deductible.
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- Anonymous1 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...
- Wayne ZLv 71 year ago
Deduct the entire amount.
The $10.5k were "gifts" and deductible expenses paid with gifted money is still deductible.