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Discussion Forum Index --> Tax Questions --> Bundling of medical expenses
Rreagan (talk|edits) said:
| 11 February 2006
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| I am told that there is a provision which would allow a person to deduct medical expenses for the past TWO years. The term was called "bundleing". Can you tell me where to find the rule?
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WESR (talk|edits) said:
| 11 February 2006
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| hi cash basis taxpr is cash basis no "bundleing" that i have ever heard of unless you wait and pay next year. maybe refering to at death you can elect to treat medical expenses incurred before death but paid within one year after death on final 1040. bye
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Taxref (talk|edits) said:
| 11 February 2006
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| What the term refers to is a timing strategy; it is not an actual tax rule. You have to crunch the numbers to see if it will work. For example, assume a family is close to the 7.5% floor each year, but does not meet it. Also assume the family has high recurring annual expenses (such as dental work or lab tests). Instead of having those tests and dental work each year, they can have them (and pay for them) in January and December of Year 1, while not having any in Year 2, then again in Jan. & Dec. of Year 3. That could put them over the 7.5% floor every other year.
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