Thursday, February 11, 2010

Can I split a medical tax deduction among 2 years or does it have to be deducted in the tax year it was paid?

I have a very large medical expense which I must pay for this year (by credit card). This expense is over 50% of my total income. Can I split the deduction over two years or do I have to claim it all this year?Can I split a medical tax deduction among 2 years or does it have to be deducted in the tax year it was paid?
You can but you shouldn't. You can't deduct medical expenses until they go over 7.5% of your income. Conventional wisdom calls for bunching as many expenses as you can in one year.





Just for instance, if your income is $50,000, your expenses would have to exceed $3,750 before you deduct any in one year. If you divide them among two years, you have to top $7,500. Unless you have enough income in a high tax bracket that would drop to a low bracket with the deduction, it is not going to make sense.Can I split a medical tax deduction among 2 years or does it have to be deducted in the tax year it was paid?
Must be deducted in the year you paid it.


This deduction is itemized deduction. You will take deduction only if your itemized deductions are more than your standard deduction..You can deduct the expenses that are more than 7.5% of your adjusted gross income (Form 1040, line 38).
when you pay it with a credit card it is as if it was paid even tho you probably will be paying it into the next year


you should claim what you are allowed to claim in the year that you are allowed to claim it
can only be deducted in the year paid. Charitable contributions can be carried over to a future year, but not unused medical deductions.
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