How does one report patient assistance programs assistance?

Forum|Forum|2 years ago
February 26, 2024
1 reply
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TurboTax Online

PaulaM

Alumni - Expert

You can only list as a medical expense, your unreimbursed out of pocket costs. If you received insurance or assistance with costs, those would not be deductible expense for you.

These unreimbursed medical expenses are entered in the medical expense section under Deductions & Credits and must exceed 7.5% of your adjusted gross income in order to itemize. See this article for reference.

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aldjflajkfljasdfAuthor

Level 2

Thanks PaulM,

let me make the case as the info you provided is good, but not quite what i was asking.

So one has a medical plan that has pharmacy coverage. When one goes to the pharmacy and the bill to the patient is 220$. Everyone don’t get in to the weeds about co-pay and deductibles and etc… KISS… keep it simple silly

Patient goes and signs up with a Patient Assistance Program, i.e. with Johnson&Johnson or Pifzer or... Then they direct you to who manages their Patient Assistance Program. The Patient Assistance Program gathers your Medical Plan and Personal and situational information and you meet the requirements for their program and one is enrolled.

Now one goes to the Pharmacy and the Patient Assistance Program with whoever you enrolled with pays 200$ of that 220$ and the patient only pays 20$.

Now you log in to your account with the program that you are part of and it list how many times you were assisted with the pharmacy cost. Let’s say in this case it shows the Patient Assistance Program paid 400$ for the tax year of the pharmacy cost.

How Is this 400$ handled in the eyes of the IRS?

Note most of the Patient Assistance Program are listed as IRS qualified Charities.

thanks for your insight PaulaM