in medical bills but haven
You might recall the big Enron collapse that was partly due to their scheme of logging future income NOW and hiding debts among many subsidipatagonia guide jacket brands1ary companies as FUTURE debt or as not their debt at alpatagonia clothing reviewsl.
In your case, if you have been, like most folks, counting income when you see the pay stub and counting debt s you accumulate it, you should probably stick to that. The IRS computers tepatagonia better sweater amazonnd to kick out returns for human eyeballing when somebody changes their accounting method.
Tpatagonia guide jacket brands0he rules are very complicated. Here s just one paragraph frpatagonia better sweater hoody xsom a recent clarification :
Although the IRS has in the past taken the positionpatagonia clothing for sale that some types of welfare plans (such as VEBAs) are disguised deferred compensation plans and therefore expenses are not deductible until the individual has receipt of the income (under section 404(a)(5) of the Internal Revenue Code)patagonia gamut shoe review, in this case the Service concluded that the plan should be analyzed as a medical plan and not as a deferred compensation plan. In making that analysis, it relied on the section 105(h) rules for discriminatory self insured medical expenses and on the fapatagonia guide jacket brands3ct that, under thpatagonia better sweater mene taxpayepatagonia better sweater vest women naturalr s accounting method, it was generally permitted to accrue expenses for the taxable year in which all the events have occurred that established the fact of liability. Under section 105(h), reimbursed medical expenses are taxable in either the plan year in which payment is made or the plan year in which the medical services are provided, as determined by the terms of the plan. In this case, the plan in question (apatagonia clothes new yorkctually the summary plan description) provided that expenses were incurred when the medical services were rendered. That provision was apparently crucial to the IRS analypatagonia better sweater hoodie menssis. Further, the IRS held that all the events for accrual had occurred since the fact of liability was established once the medical or dental services were rendered.
But then again, another sentence says:
You can include only the medical and dental expenses you paid this year, regardless of when the services were provided.
That s pretty clear.
BUT then later on, it says the OPPOSITE thing:
If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged.
So I guess you should pay off your bill with your credit card! But of course that s going to cost you like 20 or more percent more, probably much more than you save by deducting. Sigh.
We don tpatagonia guide jacket brands itemize our medical expenses. We have a reimbursement account, which is a way to avoid paying taxes on medical expenses. It accomplishes the same purpose. We do not show what we paid. We show what we have been charged.
If you can set up a reimbursement account where you work or where your spouse works, you might find this method easier. The drawback is that you have to estimate what your medical expenses will be. If you don t use it all within the year, you lose it. We ve never lost anything. Oncepatagonia guide jacket brands2 we had to each get a new pair of glasses to use what was left.
