Does the IRS allow you to deduct medical expenses paid with loan money? Also, am I allowed to deduct medical expenses paid with credit card funds?
The IRS does allow you to deduct medical expenses paid with loan funds; and the IRS also allows you to deduct medical expenses paid with credit card transactions. If you use a credit card or a loan to pay your medical expenses, the expenses are considered paid when the provider is paid. For tax purposes, it doesn’t matter for when you pay the loan or credit card bill.
However, you must itemize your tax return to claim your medical expense deductions. If you itemize, you will not be allowed to take the standard deduction. You will need to calculate both methods to determine which is gives you a lower tax.
If your itemized deductions are greater than your standard deduction, then you should complete Form 1040, Schedule A. If the itemized deductions are less than your standard deduction, then your should take the standard deduction. For more information about itemizing medical expenses, visit: Topic 502: Medical and Dental Expenses.
Virtual tax preparations let you complete your taxes online from the comfort of your home. Find out how easy remote tax preparations can be at H&R Block.
Tax season is right around the corner! Consider how the withholding allowances claimed on your Form W-4 could affect your income tax refund by visiting the Tax Information Center blog.
Due to the recent TCJA changes, we have re-released our trusted Tax Calculator. With a side-by-side comparison, you can now plan for this year's tax filing.
Spending your time volunteering is a great way to give back. Learn more about the tax benefits for volunteer work when filing your taxes at H&R Block.