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Consulting assistance on medical bills as a medical deduction?

 

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Subject Author Date
Consulting assistance on medical bills as a medical deduction? AES 10-06-2007
Posted by Seth on October 16, 2007, 1:19 am
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>> I'm planning on deducting her fee as a *medical* expense --
>> right?

> This expense is clearly not a medical expense,

If I mail a check to my doctor, is the stamp a medical expense?

Seth

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Posted by Dick Adams on October 14, 2007, 10:11 pm
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> I recently attended an Emeriti Council meeting at my
> university at which numerous emeritus faculty members (most
> of them still totally savvy intellectually, some of them MDs
> themselves) recounted horror story after horror story of
> confusing, confused, grossly incorrect, invalid,
> uninterpretable, or totally unjustified billings for medical
> care; correspondingly incorrect or incompetent processing of
> and decisions about these bills by private and government
> insurance payors and benefits plans; and almost total
> inability to get useful assistance in dealing with these
> organizations -- in short, all the other usual consequences
> of dealing with the U.S. health care system.
>
> A senior human resources/staff benefits professional from
> our university participating in the meeting noted that the
> error rate for medical billings is commonly estimated to be
> in the range of 30% of all transactions involved.
>
> I just signed a $495 check for services provided over the
> past few months by a professional accountant whose primary
> role is as a specialist and consulting in sorting out these
> problems. When we first approached her for help, she said
> in essence "Just bring in the whole proverbial 'shoebox'
> full of confusing and uninterpretable documents resulting
> from your wife's recent two-year-long medical adventure [it
> was really more like a banker's box than a shoebox in our
> case]; don't bother trying to sort anything out; I'll do
> that, tell you what bills you still have to pay, file the
> claims for those you don't, and do the paperwork to recover
> the payments you shouldn't have made." She did so, and has
> been more than worth her services.
>
> I'm planning on deducting her fee as a *medical* expense --
> right?

Unless your out of pocket medical expenses were high enough
to exceed 7.5% of your AGI, a medical deduction would be
meaningless as well as inappropriate. If your miscellaneous
itemized deductions exceed 2% of your AGI, put it there.

It is NOT a medical expense, but you can argue it is a
medical-related expense. See if your health care spending
account will cover it.

Dick

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<< The foregoing was not intended or written to be used, >>
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Posted by Pologirl on October 23, 2007, 3:07 am
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AES wrote:

> I just signed a $495 check for services provided over the
> past few months by a professional accountant
[...]
> I'm planning on deducting her fee as a *medical* expense --
> right?

Others have said or suggested her fee is not a deductible
expense. But tax preparation expenses are deductible, aren't
they? Is an accountant not a deductible expense?

Whether this is a deductible *medical* expense ... I'm not
sure. It is an area where case law applies, and I don't
have access to the literature. You could get a Private
Letter Ruling from the IRS; the fee for one of those
depends on your income but it would exceed $495. But if you
can count it as an ordinary deductible expense, you have
nothing to gain by treating it as a medical expense.

I just finished my own family's tax return for 2006,
including deductions for enormous unreimbursed medical
expenses. I didn't think to count the postage on all the
medical bills I paid by mail, but I did claim mileage for
every trip in a private vehicle for medical care, plus
tolls, parking, public transit, and for all long distance
phone calls and cell phone minutes in excess of plan
relating to medical care. I don't know for a fact these are
allowed, but I felt comfortable enough about it to claim
them.

I wish *I* could have found someone to sort out the piles of
bills and insurance EOB forms for me for just $500. Maybe
with what I learned in the past year, I should start a small
consulting business doing this for others. Once I figured
out how to do it, I kind of enjoyed making order out of
chaos.

Pologirl

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
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<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Harlan Lunsford on October 23, 2007, 6:14 pm
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Pologirl wrote:

> Others have said or suggested her fee is not a deductible
> expense. But tax preparation expenses are deductible, aren't
> they? Is an accountant not a deductible expense?

Accounting fees are not deductible JUST because they are
paid to us. What makes some fees (not all) deductible is
permission by congress as codified in the tax code. In this
case the law specifically mentions tax preparation and tax
determination.

> Whether this is a deductible *medical* expense ... I'm not
> sure. It is an area where case law applies, and I don't
> have access to the literature. You could get a Private
> Letter Ruling from the IRS; the fee for one of those
> depends on your income but it would exceed $495. But if you
> can count it as an ordinary deductible expense, you have
> nothing to gain by treating it as a medical expense.

Remember, not every deduction is or has been the subject of
'case law'.

> I just finished my own family's tax return for 2006,
> including deductions for enormous unreimbursed medical
> expenses. I didn't think to count the postage on all the
> medical bills I paid by mail, but I did claim mileage for
> every trip in a private vehicle for medical care, plus
> tolls, parking, public transit, and for all long distance
> phone calls and cell phone minutes in excess of plan
> relating to medical care. I don't know for a fact these are
> allowed, but I felt comfortable enough about it to claim
> them.

Good thing you didn't include the postage; it's not
deductible, nor are phone charges. Get a copy of IRS
publication 50.... 2 I think, the one relating to what is
deductible. Remember, any amount must be for the treatment
of the body (or mind in some cases! lol).

(snipped....)

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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