Are payments to a collection agency for hospital bills deductible?

[arnett-sam]

Doing my daughter's taxes - not sure what is deductible for this.

[KenH1]

Yes.  Payments to a collection agency for medical bills are a deductible medical expense.  Keep in mind the following about deducting medical expenses:

• You don't get the benefit if you are taking the standard deduction.
• If you itemize deductions, you will only be able to take total medical expenses that are greater than:
• 10% of your adjusted gross income if you are under age 65; or
• 7.5% of your adjusted gross income if you are age 65 or over (born before January 2, 1951).

To enter medical expenses in TurboTax, go to:

Federal Taxes , then

Deductions & Credits

Click Show More next to Medical

Click Start/Revisit box next to Medical Expenses.  

[Cassandra 4385]

If it’s a variety of medical expenses within the debt paid where does it go under medical for taxes? Is it misc? Hospitals doctors?

[DaveF1006]

Yes, you can deduct medical expenses paid to a collection agency if your daughter can itemize her deductions. If the medical expenses are less than the standard deduction allowed and if there are no more deductions she can itemize, she may not be able to receive the deduction. The standard deduction amounts are as follows.

• $29,200 – Married Filing Jointly or Qualifying Surviving Spouse (increase of $1,500)
• $21,900 – Head of Household (increase of $1,100)
• $14,600 – Single or Married Filing Separately (increase of $750)

Here is how to enter medical expenses in her return if you think she may qualify for itemized deductions.

1. FEDERAL TAXES 
2. Deductions & Credits
3. I'll choose what I work on
4. Medical
5. Medical Expenses, click Start, Update or Revisit to the right of this category.

Once you are in this section, you can browse through the variety of categories that fit the medical expenses that were paid for.