Deducting medical expenses?

[I'm a red panda]

Do deductions for medical expenses need to be taken in the year they were incurred or the year they were paid?

I was pregnant for some of this year, and expenses are not what we planned because things did not go as we expected...  anyhow, bills are slowly starting to roll in, but since we are fighting with the insurance company over genetic testing, and the OB is just now billing for May and I received care through October, it seems like it will be awhile before we know exactly what this costs us.

Should I plan on filing an extension on my taxes? Or just amending them?  Or do I take the deduction next year, since the payments will all be made in 2016.

Right now it is looking like my out of pocket costs will be close to $25-30k, so it is pretty significant.  I'm already out of pocket $15k...and most bills are not in.

[Frugalman19]

year paid, regardless of when the services were provided. Date charged on the credit card.

[bdoubleu]

Hmm, I thought it was whatever year the expenses were incurred.  I have no references though.

[Frugalman19]

Past a current expenses are only deductible if they are paid. Cannot deduct what you dont pay for. If that were true theoretically, you could incur huge expenses, not pay them, deduct them, not pay any taxes, and then file for bankruptcy.

I think student tuition is one of the only expenses you can deduct when it incurred, not when paid, because student loan debt is not dis-chargeable.

[I'm a red panda]

When I say year incurred I meant only for things that were paid. (So if it was a 2015 expense in billed for in 2016, which year does it go on?)

I'm not talking theoretical things.

[Frugalman19]

When I say year incurred I meant only for things that were paid. (So if it was a 2015 expense in billed for in 2016, which year does it go on?)

I'm not talking theoretical things.

Incurred means that the services were provided and you were billed for them. Paid is when the bill from the services are paid.

Are you saying that you are prepaying for services? You would have to be more detailed in your explanation. Are you prepaying for medical expenses that havnt happened yet?

[MDM]

When I say year incurred I meant only for things that were paid. (So if it was a 2015 expense in billed for in 2016, which year does it go on?)

2016.

See https://www.irs.gov/publications/p502/ar02.html#en_US_2014_publink1000178852: "You can include only the medical and dental expenses you paid this year, regardless of when the services were provided."

[I'm a red panda]

Thanks!

[Cathy]

For some deductions, the question of the correct year to take the deduction would depend on the taxpayer's method of accounting. (For example, the interest deduction is available for "interest paid or accrued", depending on the taxpayer's method of accounting, and subject to conditions. 26 USC § 163(a).) However, medical expenses are an example of a deduction where "[the taxpayer's] method of accounting is irrelevant. Medical expenses may be deducted only in the year of actual payment". Green v. Commissioner, TC Memo 2010-109 at *20 (citation omitted).

Note: I express no view on the specific circumstances of the original poster. I also express no view on the correctness of any propositions contained in any other reply in this thread.