We are in a complicated dispute over an old hospital bill. We will end up paying something, though it's not at all clear how much. If we pay now, I assume it would be a deductible medical expense. If they went to court and got a judgement against us, would that payment still be deductible? Would it be different if we 'settled' with them after they filed their claim? Thanks, George
"George" wrote
It all sounds like a medical expenses, with exceptions for your legal costs, so deduct away if you have to pay something.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
It seems to me that what you pay the hospital is a medical expense. If it goes to court, and the judge rules "Pay the hospital $5000, pay $1000 court costs, and pay the hospital's lawyer $10,000" then only the $5000 to the hospital is a medical expense. Seth
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