What are the exemptions for cosmetic surgeries under medical expenses?

[mjoliver7402]

Had oral surgery ($33k) plus prosthodontics ($43k). Due to bone structure this was the ONLY option to be able to have "teeth" in order to chew food. $10k out of pocket, the remainder was financed. Payments in '21 were $4k plus initial out of pocket.

Will this procedure be deductible? Will all expenses Plus financed amount be deductible?

[Opus 17]

Medical expenses are deductible if they are to cure, treat or prevent a disease or condition that affects the natural function of the body.  While purely cosmetic procedures are not deductible, it does not sound like this was really a cosmetic procedure.

You can deduct amounts actually paid to the provider in 2021 as 2021 expenses.  For example, if you financed with a third party bank or credit card and the provider was fully paid, you can deduct the entire amount.  If you financed with the provider and are paying your monthly payments to the provider, you can count what was actually paid to the provider. 

[mjoliver7402]

Thanks for the reply. I did see in publication 502 that artificial teeth are specifically mentioned as deductible. However, you stated only what I pay towards finance company is deductible as opposed to the financed amount. Your statement is in conflict with Turbo tax's statement, unless I'm misunderstanding. 

Turbo Tax statement-

"Qualified medical expenses do not need to be incurred in the current year. For example, if you got a root canal at the end of December but didn't pay for it until January of the current tax year, that root canal is a qualified medical expense for the current year."

What am I missing?

[Opus 17]

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@mjoliver7402 wrote:

Thanks for the reply. I did see in publication 502 that artificial teeth are specifically mentioned as deductible. However, you stated only what I pay towards finance company is deductible as opposed to the financed amount. Your statement is in conflict with Turbo tax's statement, unless I'm misunderstanding. 

Turbo Tax statement-

"Qualified medical expenses do not need to be incurred in the current year. For example, if you got a root canal at the end of December but didn't pay for it until January of the current tax year, that root canal is a qualified medical expense for the current year."

What am I missing?

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The question is "who are you paying."

You deduct the expense when the provider is paid.  If you are financing with the provider, then you are paying the provider a little at a time, and can only deduct what you paid the provider. If you are financing with a finance company, the finance company pays the provider, and you pay off the finance company a little at a time.  You can deduct the entire amount because the provider was paid in full. 

[mjoliver7402]

Now that is a clear and concise answer! Thank you.