Does a payment plan affect me to get full tax credit for my medical expense?

since it seems to be the doctor extending payment you can only deduct what was paid in any calendar year.

 

for medical expenses (including dental) to be deductible as an itemized deduction, they have to exceed 7.5% of your adjusted gross income for that year. in addition, after that limitation, your itemized deductions must exceed your standard deduction for that year,

Filing Status                                                    Standard Deduction 2022              Standard Deduction 2023
Single; Married Filing Separately                           $12,950                                              $13,850
Married Filing Jointly & Surviving Spouses          $25,900                                              $27,700
Head of Household                                                   $19,400                                              $20,800

 

there is an additional standard deduction if you or your spouse are older than 65 or blind

Filing Status               Additional Standard Deduction 2022                                     2023 (Per Person)

Married Filing Jointly or Married Filing Separately
• 65 or older OR blind                                               $1,400                                                 $1,500
• 65 or older AND blind                                            $2,800                                                 $3,000            

Single or Head of Household
• 65 or older OR blind                                               $1,750                                                $1,850
• 65 or older AND blind                                            $3,500                                                $3,700

You have to meet TWO very tough thresholds before medical or dental expenses make any difference in your refund or tax due.   First---you can only get a medical deduction for the amount you actually paid in the tax year that is ABOVE 7.5% of your AGI----so that's the first hurdle.

 

 

Only expenses you have actually paid count.   You cannot enter payments you will make in the future.

 

Then, you have to have enough itemized deductions like medical expenses, mortgage interest, property tax, etc. to exceed your standard deduction.  If you have not exceeded your standard deduction, then none of the Itemized deductions will make any difference at all.

 

 

Medical expenses are deductible when you pay the provider.  If you pay the provider in full by taking out a loan from a credit card or another lender, then you have paid the provider and the expenses are deductible. If you are paying the provider in installments, then you can only deduct what you actually have paid to the provider during the tax year.