If you incur a medical bill in December 2019 ad the bill is paid in 2020 what year should it be use it as a medical deduction?

Update:

the credit card bill will arrive early next year. thanks again y/a community.

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  • A.J.
    Lv 7
    2 months ago
    Favorite Answer

    If the medical bill is in your credit card statement as an item dated in 2019, it is a 2019 expense. Deductibility of medical expenses are only if itemizing in income taxes and are above I think about 8% of gross income. There is very little tax benefit for most people. It is not when you pay the credit card bill and instead when the credit card gets billed.

  • 1 month ago

    The year you pay it.

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  • Eva
    Lv 7
    2 months ago

    The year it is paid. It may not make much difference due to the higher standard deduction and the amount you have to subtract from your medical expenses.

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  • 2 months ago

    Medical bills are deductible when paid.  If you pay by credit card, it is considered "paid" on the day you charge it (since that's when the doctor gets his/her money from the credit card company), not on the day you pay your credit card bill.

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  • 2 months ago

    IN 2020 when you actually paid. it. Only deductible in the year you actually paid it.

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  • 2 months ago

    Personal income taxes are always computed on a cash basis, this means you treat every transaction as an exchange of cash the day the money actually changes hands.

    So the day you pay the bill is the day it can be deducted. If you pay it in 2019 then you deduct it in 2019, if you pay it in 2020 then you deduct it in 2020.

    The bill is considered paid the day you pay the provider, regardless of how you pay them. If you use a credit card or some other form of borrowed money to pay the bill, you deduct it the day you paid the provider, not the day you pay off that card or loan.

    So if you charge the bill to your credit card in 2019 then you can deduct it in 2019. If you charge the bill to your card in 2020 then you deduct it in 2020.

    Keep in mind you must itemize, AND exceed 10% of your AGI in out of pocket medical expenses in order to get any tax benefit.

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