Can I write off difference for in-network providers?

[amanda_dahir]

I bill insurance companies my usual rate (i.e. $100) and the in-network provider pays the negotiated rate (i.e. $75). Can I write off the difference on my taxes (e.g. $25)?

[rjs · Accepted solution]

The difference is already written off because you report only $75 of income instead of $100. Therefore you are not paying tax on the $25 that you did not receive. It's already deducted from your taxable income because it was never reported as income. You can't deduct it again.

[VolvoGirl]

Unless you first reported the full amount billed as income on schedule C line 1.