Jane wrote:

- quote -

Thank you all. You've been very helpful.

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Arthur L. Rubin wrote:
- quote -

Accrual basis: NOT FOR MEDICAL. The code (IRC 213) says
"paid" - not "paid or incurred". Only health insurance,
because it's tied to a specific period, can be accrued (and
I think that comes from some Rev. Ruling, not the IRC
itself).

This is one of the few places where the taxpayer's
accounting method doesn't matter.

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- quote -

I find it amusing that one of the things a 1040 X can be
used for is changing a No to a Yes, but not vice versa, for
contributing $3 to the presidential election campaign find.

And, of course, there are certain elections that cannot be
changed after the due date. And no fair trying to change
MFJ to MFS after the due date either.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Jane wrote:

- quote -

Actually, he did. Only those paid (the check is
in the mail) or charged to a credit card (use the
posting date, not the transaction date) can be
deducted for that year.

That is, if you're a cash taxpayer for accounting
purposes. If you're an accrual taxpayer, then you
claim income and deduct expenses in the year
accrured.

- quote -

Yes.

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- quote -

You are on the 'cash basis', deduct only medical expenses you actually
PAID for in 2004 regardless of what year the expense was incurred.

- quote -

deductible for 2004, the year you paid for them...

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deduct those expenses on your 2005 returns...

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yes, if you have deductible medical expenses in excess of
the 7.5% exclusion amount, and these plus your other
deduction (home mtge, R/E taxes contributions, etc) exceed
the standard deduction for your filing status you can amend
the returns to generate further refunds...

Dave

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As stated earlier, only taxes paid or charged to a credit
card in 2004 can be deducted on your 2004 return. So this
includes expenses incurred in 2003 but paid in 2004, but
does not include expenses incurred in 2004 but paid in 2005.

And yes, you can amend your return to change from the
standard deduction to Schedule A. (In fact you can do just
about anything in an amendment, including changing filing
status and adding or deleting dependents.)

Dennis

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Thanks but you didn't mention if I deduct charges PAID
in 2004 or charges INCURRED in 2004. Some charges paid
in 2004 were for services rendered in 2003. Some
services in 2004 have been paid in 2005.

Also - can I file an ammended return with itemized
deductions when I did not itemize in the original?

Thanks again.

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"Jane" <googlemail2003[at]yahoo.com> wrote:

- quote -

Only the ones you paid or charged to a credit card.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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If I plan to deduct medical expenses do I only deduct
expenses paid in 2004 or expenses incurred in 2004?

I recently filed my 2004 return but find that I have enough
in medical expenses this year to get back another $200 or so
(it was a very bad year). I did not itemize on my original
return. Can I file a corrected return with itemized
deductions?

Thank you.

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