medical expense

[Kehler409]

I got a big surprise medical bill last year. Its going to take me years to pay it off. Can I deduct the whole cost this year? If I only deduct the payments each year ,I'm sure I wont make the 7% threshold. The surgery was in 2024 and to my surprise insurance approved it but there was a rider that capped the amount that I wasn't aware of.  I finally had to set up a payment plan to keep it from going to collections. 

[Vanessa A]

No.  You cannot deduct the entire amount this year unless you charged it to a credit card. If you are paying the hospital, then you would be only able to claim the amount you paid in the year as an itemized expense. 

[xmasbaby0]

No,  you cannot deduct the whole bill.  You can only enter the amount that you actually paid in 2024.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2024—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY            $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)