Medical expenses tax deductions - billed vs. paid
In the USA, total medical expenses above a threshold may be deducted from taxes. If a medical expense occurs in December and the bill is paid in January, for tax purposes, does this expense occur in the December year or the next (January) year?
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The expense occurs when you pay it, so the expense would be deductable for the year of that January. (Source: working with a tax accountant last year when I was in a similar situation. Disclaimer: I am not an accountant.)
Additional source, IRS pub 502, at the end of page 2:
You can include only the medical and dental expenses
you paid this year, regardless of when the services were
provided.
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