One of the more tricky areas when taking a tax deduction is defining what is considered ‘medical expenses’. Ordinarily, we think of medical expenses as being those amounts that are billed to the patient. However, IRS Publication 598 suggests that this may not be the case, and that’medical expenses’ should be considered as a deductible amount regardless of whether or not the patient is actually charged for the treatment.
To illustrate how tricky this can be, let’s say that you are writing a medical expense off on your taxes and you want to claim all of the expenses that you incurred during your stay at the Mayo Clinic. You are presented with a choice of either the amount that you were actually charged or the amount that was approved by the insurance company. In this case, you would have to decide whether or not to claim the amount that was approved by the insurance company or the amount that the Mayo Clinic actually charged you. It is essential that you claim the correct amount so that you do not violate the rules governing medical expenses.
What Should You Claim?
The most straightforward approach is to claim the amount that you were actually charged. However, in some cases, you may have incurred expenses that were not covered by your insurance and you would not have been charged. In these cases, it is best to claim the amount that was approved by the insurance company. You should only have to search for the ‘rule of thumb’ for medical expenses on this one question, and you should have no trouble figuring out how to report this expense on your taxes. This article will help further clarify this and other related topics so that you can properly take advantage of your tax deductions.
How Much Does It Cost To See A General Practitioner?
Another important point that Publication 598 makes is that the cost of medical treatment varies from insurance company to insurance company and from general practitioner to general practitioner. Thus, you need to contact the patient’s insurance company to get a sense of what is covered by their insurance plan. Only after you know this can you determine how much you will need to write off on your taxes. This point is especially relevant if you have a very high deductible and you need to know how much you will need to write off to reach this deductible.
Who Pays For The Treatment?
It is also important to know that you, the patient, generally do not pay for medical treatment. This is something that is handled by your insurance company, and they will bill you later after the treatment. The reason for this is that insurance companies want to encourage prompt treatment and prevent patients from delaying care due to financial concerns.
However, if you are still confused about what is considered medical expenses and what isn’t, this article will help further clarify the subject.