Deductible Expenses Paid by Credit Card--Timing

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plannerman
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Deductible Expenses Paid by Credit Card--Timing

Post 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
Jags4186
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Re: Deductible Expenses Paid by Credit Card--Timing

Post 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.
jebmke
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Re: Deductible Expenses Paid by Credit Card--Timing

Post 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
When you discover that you are riding a dead horse, the best strategy is to dismount.
MikeG62
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Re: Deductible Expenses Paid by Credit Card--Timing

Post 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/
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livesoft
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Re: Deductible Expenses Paid by Credit Card--Timing

Post 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.
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plannerman
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Re: Deductible Expenses Paid by Credit Card--Timing

Post by plannerman »

Thanks--Pub 17, I'm suitably embarrassed.

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clydewolf
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Re: Deductible Expenses Paid by Credit Card--Timing

Post by clydewolf »

You borrowed the money to pay the medical bill.

Now you must pay the loan.
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