Can I Deduct Medical Payments for Costs Accrued in a Previous Year?

[legiangus]

Can I deduct medical payments made in 2024 that were installments part of payment plan from expenses incurred in 2023? That is, if I received my medical bill in 2023, but continued making payments on it through 2024, would the payments in 2024 be eligible for a tax deduction?

[DawnC]

Yes.  You can deduct any medical expenses that you paid for in 2024, if you itemize deductions.  

• The IRS allows all taxpayers to deduct their qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income.
• You must itemize your deductions on IRS Schedule A in order to deduct your medical expenses instead of taking the Standard Deduction.
• At this time, all unreimbursed medical expenses incurred as a result of COVID-19 are tax deductible.
• If you pay for your medical expenses using money from a flexible spending account or health savings account, those expenses aren't deductible because the money in those accounts is already tax-advantaged.