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Posted by Bill on July 25, 2007, 6:22 pm
Please log in for more thread options googlemail2003@yahoo.com (Jane) posted:
> Do I deduct expenses that I paid during a tax
> year or expenses that were incurred, but not
> necessarily paid, during that year? So - if I
> saw the doctor on 11/5/06 and got billed in
> 2007, is that a 2007 deduction? Is there
> something about being able to deduct
> expenses paid in the last few months of the
> previous year?
> As for proof of expenses - do I have to show
> canceled checks or charge account
> statements or are insurance claim forms
> sufficient?
> I realize expenses have to be over 7.5 of my
> gross income.
> This will be the first time ever that we have
> medical expenses high enough to deduct
> (lucky us!) and I want to be sure I do it right.
Standard practice is for individual tax returns to be
calculated on a cash basis, so you should only include
medical payments made during the tax year in question. This
may, however, include payments for services rendered in the
previous year -- and any checks mailed as of December 31 of
the tax year, would qualify, even if they don't get deducted
from the account until the following year.
Your records should be carefully organized, but can include
receipts, statements, cancelled checks (or photocopies of
same) -- or any written proof of payment.
Bill
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