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.