Discuss the timing of the allowable medical expense deduction.
What will be an ideal response?
Generally, a deduction for medical expenses is allowed only in the year in which the expenses are actually paid, regardless of the taxpayer's method of accounting or when the event that caused the expenditure occurs. For example, if medical care is received during the year but remains unpaid as of the end of the year, the deduction for that care is deferred until the year in which payment occurs. If medical care is prepaid, no deduction is allowed until the year the care is actually rendered unless there is a legal obligation to pay or unless the prepayment is a prerequisite to receipt of the medical care. If the obligation is charged on a credit card, payment is deemed to have been made on the date of the charge, not on the later date when the credit card balance is paid.
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