Deductibility of Medical Expenses

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Subject Author Date Deductibility of Medical Expenses snoll1308 06-04-2009  Re: Deductibility of Medical Expenses Paul Thomas, CPA 06-04-2009  Re: Deductibility of Medical Expenses dpb 06-04-2009  Re: Deductibility of Medical Expenses Paul Thomas, CPA 06-05-2009  Re: Deductibility of Medical Expenses dpb 06-05-2009  Re: Deductibility of Medical Expenses D. Stussy 06-05-2009
Posted by snoll1308 on June 4, 2009, 2:54 pm Please log in for more thread options Unfortunately, my family has/is encountering considerable, unexpected health care expenses this year. I have contributed money to a Flexible Spending Account (FSA). Our actual expenses, however, will exceed the FSA contributions. If our medical expenses less our FSA contributions exceed 7.5% of our AGI, are we still eligible for a deduction (or does participation in an FSA make us ineligible)? Also, some healthcare providers will allow us to pay the expenses over a period of time. How are expensed incurred in one year, but paid in another, factored into the above deduction calculation. Thanks. -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by Paul Thomas, CPA on June 4, 2009, 3:54 pm Please log in for more thread options > Unfortunately, my family has/is encountering considerable, unexpected > health care expenses this year. I have contributed money to a > Flexible Spending Account (FSA). Our actual expenses, however, will > exceed the FSA contributions. If our medical expenses less our FSA > contributions exceed 7.5% of our AGI, are we still eligible for a > deduction (or does participation in an FSA make us ineligible)? Actually it's qualified medical expenses less the FSA withdrawals (not contributions) used to pay medical costs, and yes, any amounts in excess (paid with after tax money) are deductible------in the year paid. > Also, some healthcare providers will allow us to pay the expenses over > a period of time. How are expensed incurred in one year, but paid in > another, factored into the above deduction calculation. > Deductible in the year (or years) paid. -- Paul Thomas, CPA www.paulthomascpa.com 770-725-1433 Office -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by dpb on June 4, 2009, 4:47 pm Please log in for more thread options Paul Thomas, CPA wrote: ... > Deductible in the year (or years) paid. So, _IF_ (the proverbial big if) could find cheap enough money, it could theoretically pay to borrow ahead to maximize the deductible amount to avoid the 7.5% exclusionary amount more than once if the expenses have already been incurred in the given tax year... -- -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by Paul Thomas, CPA on June 5, 2009, 8:26 am Please log in for more thread options > Paul Thomas, CPA wrote: > ... >> Deductible in the year (or years) paid. > > So, _IF_ (the proverbial big if) could find cheap enough money, it could > theoretically pay to borrow ahead to maximize the deductible amount to > avoid the 7.5% exclusionary amount more than once if the expenses have > already been incurred in the given tax year... Certainly. The shifting of deductible expenses into one year to maximize itemized deductions is a great tax planning tool. If you're already at the 7.5% mark (or close to it), try to get more items into that year if possible. -- Paul Thomas, CPA Watkinsville, Georgia -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Posted by dpb on June 5, 2009, 12:37 pm Please log in for more thread options Paul Thomas, CPA wrote: >> Paul Thomas, CPA wrote: >> ... >>> Deductible in the year (or years) paid. >> So, _IF_ (the proverbial big if) could find cheap enough money, it could >> theoretically pay to borrow ahead to maximize the deductible amount to >> avoid the 7.5% exclusionary amount more than once if the expenses have >> already been incurred in the given tax year... > > > > > Certainly. The shifting of deductible expenses into one year to maximize > itemized deductions is a great tax planning tool. > > If you're already at the 7.5% mark (or close to it), try to get more items > into that year if possible. I simply wanted to emphasize the obvious for OP as there seemed perhaps to be a focus on ensuring payments could be made from current income by stretching them out but that might be better options if didn't overlook them... -- -- << ------------------------------------------------------- >> << 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. >> << ------------------------------------------------------- >> Similar Threads Posted Are medical insurance monthly payments deductible on Schedule A medical expenses? 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