I have a question if you paid on doctors bills that was in collection does that count under medical bills?

[ThomasM · Accepted solution]

Yes, it does, provided you didn't claim those same expenses in a previous year.  IRS allows a deduction for non-reimbursed out of pocket medical costs that you paid during the year, regardless whether they were for current or prior year bills.  The deduction is taken in the year paid.

There are certain limitations, though.  Medical expenses are deductible as an itemized deduction on Schedule A, so if you don't have enough deductions to itemize -- meaning, you take the Standard Deduction because it's higher -- then you won't get the medical deduction.

Another limitation is that the medical expenses have to exceed 10% of your Adjusted Gross Income in order to begin getting the deduction (7 1/2% if you're age 65+).

You'll enter the medical expenses by clicking on the Federal Taxes tab, then Deductions & Credits, then scroll down to Medical and select Medical Expenses.  Follow the prompts to enter your amounts.