[startupcfo]

[strong]MCQ # 1132: “Which of the following statements is correct regarding the deductibility of an individual’s medical expenses?”[/strong]

The correct answer is offered as:

B. A medical expense deduction is allowed for payments made in the current year for medical services received in earlier years.

I agree with this, based on the Regulations for section 213. But then the rationale goes on to say

“Expenses are considered as paid at the time of the credit card transaction regardless of the timing of the payment of the credit card by the taxpayer.”

Those 2 statements appear to be in conflict.

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[Missy]

The credit card transaction date is the date payment was Made to the provider which is the only date that counts. If you put it on a credit card in 2016 and paid the credit card bill in 2017-it's a 2016 expense.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Anonymous]

As a side-note, to use the markup tags, you have to use the < and > symbols. 🙂

[PharmBoy]

I agree with mla. The credit card balance is a loan. You deduct when the expense is paid, not when the loan is repaid.

If you borrowed money for school, youi would deduct qualified education expenses in the year you paid those expenses, not when you paid back the loan.

[Author]

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