Can you only deduct medical expenses that you actually paid during the year or can you claim them because they were incurred during the year?

[JaimeG · Accepted solution]

You can only deduct Medical Expenses that were actually paid during the Tax Year. Medical Expenses are an Itemized Deduction that is subject to the 10% of AGI rule (7.5% if you are above age 65). This means that only the expenses that are above 10% of your AGI will be deductible on Schedule A. Additionally if the sum of Itemized Deductions in Schedule A do not exceed the amount of your Standard Deduction, Schedule A will not be beneficial to your return.

Standard Deduction Amounts for Tax Year 2016:

• Single $6,300.00
• Married Filing Joint or Qualified Widow(er) $12,600.00
• Married Filing Separate $6,300.00
• Head of Household $9300.00
• Dependent $1,050.00

I have also included a list of common Itemized Deductions so hat you may include as many as possible in your return and make an informed decision regarding your Deduction Method.