I am currently making payments on a ~4k loan that was paid directly to the doctor for laser eye surgery.

Can I deduct the 4k loan as a health expense? Or the payments I am making on the loan? Or nothing at all?


You deduct expenses when you incur them (when you pay the hospital, for example). Medical expenses are deducted on Schedule A, subject to 7.5% AGI threshold. Financed or not - doesn't matter. The medical expense is deductible (if it is medically necessary), the loan interest is not.

  • 1
    Right. For those reading this after 2012, the 7.5% rises to 10% in 2013. Publication 502 lists permitted medical deductions. – JTP - Apologise to Monica Dec 9 '12 at 1:08
  • So you deduct the amount of the bill you receive, in the year you receive it, however you arrange to pay it? – KeithS Feb 22 '13 at 4:06
  • You deduct when you pay it. Whether you take a loan to pay it(either through financing or credit card or else) or pay it in cash - doesn't matter. – littleadv Feb 22 '13 at 4:45

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