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Posted by John H. Fisher on July 25, 2007, 6:22 pm
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> 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.
The medical expenses are deducted in the year they are paid.
Generally, taxpayers report their income and expense on a
"Cash Basis" and use a "Calendar Year" to report . They
report their income as they receive it and report their
expense when they pay it.
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