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Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 7:15 am
by plannerman
I have large, deductible medical expenses incurred in 2017 that I would like to pay with a credit card in 2017. The credit card payment is due and will not be paid until 2018. I did a quick google search and the consensus is that this expense is deductible on my 2017 tax return.

Can anyone point me to an official IRS pub or regulation that confirms this?

plannerman

Re: Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 7:17 am
by Jags4186
I don't know if there is an IRS pub about this but if you have a receipt showing payment made in 2017 I would say you're fine. The IRS shouldn't care how you pay a bill.

Re: Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 8:02 am
by jebmke
plannerman wrote:
Thu Nov 30, 2017 7:15 am
I have large, deductible medical expenses incurred in 2017 that I would like to pay with a credit card in 2017. The credit card payment is due and will not be paid until 2018. I did a quick google search and the consensus is that this expense is deductible on my 2017 tax return.

Can anyone point me to an official IRS pub or regulation that confirms this?

plannerman
Pub 17

Re: Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 8:08 am
by MikeG62
I would say that the expense is deductible based upon the date the charge posts to your CC statement. I would offer the following in support of this view:

http://dinesentax.com/6062/when-are-pur ... deductible

https://www.1040.com/tax-guide/health-a ... -expenses/

Re: Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 8:11 am
by livesoft
jebmke wrote:
Thu Nov 30, 2017 8:02 am
...
Pub 17
Yep, they should teach Publication 17 in high school English. It is a better read than Wuthering Heights.

Re: Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 6:17 pm
by plannerman
Thanks--Pub 17, I'm suitably embarrassed.

Steve

Re: Deductible Expenses Paid by Credit Card--Timing

Posted: Thu Nov 30, 2017 7:58 pm
by clydewolf
You borrowed the money to pay the medical bill.

Now you must pay the loan.