Medical Bills?
Q. I heard the government will pay for my medical bills, is this true? If not, how can I get medical bills off my credit score?
Asked by B'cuz im cool like that! - Thu Dec 14 17:02:00 2006 - - 2 Answers - 0 Comments
A. Check with the hospital you're being billed from- sometimes, if your income qualifies, they can forgive some of the bill. Otherwise- you need to pay up. Get a payment plan if your balance is large but other than bankrupcty (never a way to go) there's not way to get it off your credit report.
Answered by Vadalia - Thu Dec 14 17:27:00 2006
Q. I heard the government will pay for my medical bills, is this true? If not, how can I get medical bills off my credit score?
Asked by B'cuz im cool like that! - Thu Dec 14 17:02:00 2006 - - 2 Answers - 0 Comments
A. Check with the hospital you're being billed from- sometimes, if your income qualifies, they can forgive some of the bill. Otherwise- you need to pay up. Get a payment plan if your balance is large but other than bankrupcty (never a way to go) there's not way to get it off your credit report.
Answered by Vadalia - Thu Dec 14 17:27:00 2006
What percent of ones medical bills is actually for services for illegals?
Q. On two congressional hearings, hospital representatives told Congress that illegals medical bills were folded into American families medical bills. Does anyone working or having worked in the medical billing know what percent we were charged for the medical services to illegals? Constitutionally we should have the right to compensation for fruad, but has anyone documentation at to the percent of illegal fraudulent charges to paying insured Americans?
Asked by david u - Thu Oct 22 18:27:02 2009 - - 1 Answers - 0 Comments
A. It varies WIDELY based on the individual hospital. Basically ALL hospital charges that are not paid, ultimately cost everyone else. Perfectly legal red-blooded Americans are ALSO the reason for these charges.
Answered by Ryan M - Thu Oct 22 18:33:02 2009
Q. On two congressional hearings, hospital representatives told Congress that illegals medical bills were folded into American families medical bills. Does anyone working or having worked in the medical billing know what percent we were charged for the medical services to illegals? Constitutionally we should have the right to compensation for fruad, but has anyone documentation at to the percent of illegal fraudulent charges to paying insured Americans?
Asked by david u - Thu Oct 22 18:27:02 2009 - - 1 Answers - 0 Comments
A. It varies WIDELY based on the individual hospital. Basically ALL hospital charges that are not paid, ultimately cost everyone else. Perfectly legal red-blooded Americans are ALSO the reason for these charges.
Answered by Ryan M - Thu Oct 22 18:33:02 2009
Do medical bills weigh differently upon your personal credit rating?
Q. I have heard that medical bills do not affect your credit in the same way other debts do. Is this true. Are there varying degrees of debt? Thank you
Asked by Saul - Fri Jun 27 22:53:10 2008 - - 2 Answers - 0 Comments
A. I have heard that too. I think many credit places over look that because most medical billing is SO outrageous even WITH insurance that it is nearly impossible to pay it all off at once. I wouldn't worry about it. I think most places will work with you. Your interest may be slightly higher due to it.
Answered by z - Fri Jun 27 23:01:20 2008
Q. I have heard that medical bills do not affect your credit in the same way other debts do. Is this true. Are there varying degrees of debt? Thank you
Asked by Saul - Fri Jun 27 22:53:10 2008 - - 2 Answers - 0 Comments
A. I have heard that too. I think many credit places over look that because most medical billing is SO outrageous even WITH insurance that it is nearly impossible to pay it all off at once. I wouldn't worry about it. I think most places will work with you. Your interest may be slightly higher due to it.
Answered by z - Fri Jun 27 23:01:20 2008
Can I claim medical bills and prescription drugs as a tax deduction?
Q. How do you determine if medical can be claimed as a deduction? I had alot of medical bills this year.
Asked by Kate - Sat Apr 3 16:22:30 2010 - - 6 Answers - 0 Comments
A. Part of them can, whatever portion exceeds 7.5% of your gross income can be claimed.
Answered by Janet P - Sat Apr 3 16:25:59 2010
Q. How do you determine if medical can be claimed as a deduction? I had alot of medical bills this year.
Asked by Kate - Sat Apr 3 16:22:30 2010 - - 6 Answers - 0 Comments
A. Part of them can, whatever portion exceeds 7.5% of your gross income can be claimed.
Answered by Janet P - Sat Apr 3 16:25:59 2010
How do you remove medical bills from credit report?
Q. I have heard and read things regarding medical bills on credit reports. I have heard they they shouldnt affect credit and things of that nature. My girl has 8 negative things on her credit report, 6 of them are ambulance and medical bills. Can these be removed? As of now they are not paid and are with creditors.
Asked by darko_d1 - Tue Oct 2 21:24:51 2007 - - 4 Answers - 0 Comments
A. Derogatory trade lines stay on your credit report for 7 years. Once they are paid they should be marked as "paid". However, you may try negotiate "pay for delete" agreement with your creditors. You should have this agreement in writing before you pay them anything though.
Answered by infiniti - Tue Oct 2 21:37:52 2007
Q. I have heard and read things regarding medical bills on credit reports. I have heard they they shouldnt affect credit and things of that nature. My girl has 8 negative things on her credit report, 6 of them are ambulance and medical bills. Can these be removed? As of now they are not paid and are with creditors.
Asked by darko_d1 - Tue Oct 2 21:24:51 2007 - - 4 Answers - 0 Comments
A. Derogatory trade lines stay on your credit report for 7 years. Once they are paid they should be marked as "paid". However, you may try negotiate "pay for delete" agreement with your creditors. You should have this agreement in writing before you pay them anything though.
Answered by infiniti - Tue Oct 2 21:37:52 2007
How do unpaid medical bills that was sent to collection appear on your credit report?
Q. I have some questionable medical bills that went to collection. They are small amounts. I did not pay them because I told them that they are supposed to be covered by my health insurance. Then I started receiving letters from collection agency. I still did not pay them and reiterate that they are supposed to be covered by my insurance. This bills was about 3 years ago. Will this affect my credit score? I don't see anything on my credit report about medical bills. Only credit cards and car loans.
Asked by AimHighThinkBig - Tue Jul 3 14:54:30 2007 - - 4 Answers - 0 Comments
A. Even small amounts affect your credit score. These bills would most likely show up as "charge-offs" or "closed-unpaid" meaning that they were written off by the hospitals/doctor's offices as bad debt. If I were you, I'd go back through your records and get them resolved with the insurance company and collection agencies. Just because they don't show up now doesn't mean that they won't show up later. Most importantly, keep good records of any billing or credit disputes you ever have. Keep every letter, email, contact name, dates of conversations, etc. If you ever have to challenge something on your credit report or in a courtroom these documents will be your saving grace.
Answered by Bridey - Tue Jul 3 15:06:28 2007
Q. I have some questionable medical bills that went to collection. They are small amounts. I did not pay them because I told them that they are supposed to be covered by my health insurance. Then I started receiving letters from collection agency. I still did not pay them and reiterate that they are supposed to be covered by my insurance. This bills was about 3 years ago. Will this affect my credit score? I don't see anything on my credit report about medical bills. Only credit cards and car loans.
Asked by AimHighThinkBig - Tue Jul 3 14:54:30 2007 - - 4 Answers - 0 Comments
A. Even small amounts affect your credit score. These bills would most likely show up as "charge-offs" or "closed-unpaid" meaning that they were written off by the hospitals/doctor's offices as bad debt. If I were you, I'd go back through your records and get them resolved with the insurance company and collection agencies. Just because they don't show up now doesn't mean that they won't show up later. Most importantly, keep good records of any billing or credit disputes you ever have. Keep every letter, email, contact name, dates of conversations, etc. If you ever have to challenge something on your credit report or in a courtroom these documents will be your saving grace.
Answered by Bridey - Tue Jul 3 15:06:28 2007
Cancer - How to pay the medical bills when your insurance is gone?
Q. Cancer - How to pay the medical bills when your insurance is gone? My mum is diagnosed with cancer and won't be able to work soon. Her insurance will last for three months after she stops working. How is it possible for my family to pay for the medical bills without any insurance? Anyone who has/had this situation, I'd appreciate it if you can share your experiences and advise on what can be done. Thank you very much.
Asked by Jennifer - Sun Apr 4 12:22:53 2010 - - 6 Answers - 0 Comments
Q. Cancer - How to pay the medical bills when your insurance is gone? My mum is diagnosed with cancer and won't be able to work soon. Her insurance will last for three months after she stops working. How is it possible for my family to pay for the medical bills without any insurance? Anyone who has/had this situation, I'd appreciate it if you can share your experiences and advise on what can be done. Thank you very much.
Asked by Jennifer - Sun Apr 4 12:22:53 2010 - - 6 Answers - 0 Comments
How should I deal with overwhelming medical bills?
Q. I have so much anxiety over medical bills. Are there any organiztions that help with medical bills? I owe over $10,000. I have a good job but may lose the job over health reasons. Any advice would be greatful.
Asked by Anthony C - Fri Jul 18 13:31:24 2008 - - 4 Answers - 0 Comments
A. Call the providers and ask them if they will discount the charges and set up a payment plan. Most will be happy to work with you.
Answered by Jeanne R - Fri Jul 18 14:10:57 2008
Q. I have so much anxiety over medical bills. Are there any organiztions that help with medical bills? I owe over $10,000. I have a good job but may lose the job over health reasons. Any advice would be greatful.
Asked by Anthony C - Fri Jul 18 13:31:24 2008 - - 4 Answers - 0 Comments
A. Call the providers and ask them if they will discount the charges and set up a payment plan. Most will be happy to work with you.
Answered by Jeanne R - Fri Jul 18 14:10:57 2008
How to pay medical bills on my credit report?
Q. What is the proper way to clear up your credit? I have a lot of things falling off my credit report this year. Also, I have some medical bills I need to pay off. For the things that suppose to fall off do I dispute it? If so how many can you do at one time? For as things I need to a pay off do I do DV first and then do PFD? Are go straight for the PFD? What is the proper way of take care of this?
Asked by Lady - Tue Apr 21 10:15:56 2009 - - 2 Answers - 0 Comments
A. Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one - creditreport.imess.net
Answered by Brad C - Tue Apr 21 14:57:43 2009
Q. What is the proper way to clear up your credit? I have a lot of things falling off my credit report this year. Also, I have some medical bills I need to pay off. For the things that suppose to fall off do I dispute it? If so how many can you do at one time? For as things I need to a pay off do I do DV first and then do PFD? Are go straight for the PFD? What is the proper way of take care of this?
Asked by Lady - Tue Apr 21 10:15:56 2009 - - 2 Answers - 0 Comments
A. Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one - creditreport.imess.net
Answered by Brad C - Tue Apr 21 14:57:43 2009
I just got compensated for medical bills from a car accident, do i have to disclose it as income on my taxes?
Q. The money i got was not even enough to cover all the medical bills. The bills date back to 5 years and i have paid all of them as they came up personally. Do i have to pay any kind of taxes federal or state(virginia) on the settlement money.
Asked by da_walaiti_munda - Thu Jan 24 16:37:43 2008 - - 1 Answers - 0 Comments
A. No
Answered by netnazivictim - Thu Jan 24 16:44:42 2008
Q. The money i got was not even enough to cover all the medical bills. The bills date back to 5 years and i have paid all of them as they came up personally. Do i have to pay any kind of taxes federal or state(virginia) on the settlement money.
Asked by da_walaiti_munda - Thu Jan 24 16:37:43 2008 - - 1 Answers - 0 Comments
A. No
Answered by netnazivictim - Thu Jan 24 16:44:42 2008
How long do medical bills stay on your credit record?
Q. I have some medical bills from when I didn't have medical insurance. I noticed that TransUnion and Experian are no longer listing it in their report, but equifax is. They will is about 25K because it was emergency surgery. The deby is from 2004. i thought it stays on record for like 10 years?
Asked by chicata25 - Mon Jan 7 02:42:42 2008 - - 4 Answers - 0 Comments
A. I agree with Credit King. Not all collection accounts are reported with all 3 agencies. Medical bills are a perfect example of this. The Fair Credit Reporting Act states that a debt can show up to 7 years from the date that it went delinquent. So it could be slated to come off sometime within the next 3 years. Another important this is depending on where you live, you the debt may not be able to be legally enforced because the statute of limitations of collecting the debt in court may have run out, which can give you the advantage in negotiating a "pay to delete", which is a payment in exchange for removing it from your report sooner if you don't want to wait for the FCRA to take its course. Matter of fact, I posted several links on how… [cont.]
Answered by $m v - Mon Jan 7 09:22:03 2008
Q. I have some medical bills from when I didn't have medical insurance. I noticed that TransUnion and Experian are no longer listing it in their report, but equifax is. They will is about 25K because it was emergency surgery. The deby is from 2004. i thought it stays on record for like 10 years?
Asked by chicata25 - Mon Jan 7 02:42:42 2008 - - 4 Answers - 0 Comments
A. I agree with Credit King. Not all collection accounts are reported with all 3 agencies. Medical bills are a perfect example of this. The Fair Credit Reporting Act states that a debt can show up to 7 years from the date that it went delinquent. So it could be slated to come off sometime within the next 3 years. Another important this is depending on where you live, you the debt may not be able to be legally enforced because the statute of limitations of collecting the debt in court may have run out, which can give you the advantage in negotiating a "pay to delete", which is a payment in exchange for removing it from your report sooner if you don't want to wait for the FCRA to take its course. Matter of fact, I posted several links on how… [cont.]
Answered by $m v - Mon Jan 7 09:22:03 2008
How will medical bills effect a USDA loan approval?
Q. My husband and I are going to see about a USDA loan to buy our first home, however I owe about $2,000 in medical bills. Does anyone know if this will pose a problem?
Asked by Casey - Thu Apr 23 06:43:33 2009 - - 2 Answers - 0 Comments
A. It isn't very much debt, so no problem on that end. Of course it depends on how low your income is. Medical bills are like any other, if you are making your payments they improve your credit.
Answered by Landlord - Thu Apr 23 08:49:21 2009
Q. My husband and I are going to see about a USDA loan to buy our first home, however I owe about $2,000 in medical bills. Does anyone know if this will pose a problem?
Asked by Casey - Thu Apr 23 06:43:33 2009 - - 2 Answers - 0 Comments
A. It isn't very much debt, so no problem on that end. Of course it depends on how low your income is. Medical bills are like any other, if you are making your payments they improve your credit.
Answered by Landlord - Thu Apr 23 08:49:21 2009
How can I get old medical bills settled off my credit?
Q. I have 3 old medical bills from 4 years ago haunting my credit ranging from $1100 to $2000 each. Is there anything I can do to settle with them or try to delete them off. Where can I find self help or letters to write etc..any input would be great.
Asked by lbcali - Wed Jun 4 23:49:56 2008 - - 6 Answers - 0 Comments
A. You can call them and set up a payment plan or you can try to dispute them with the credit bureau. When you dispute something and if they have not contacted you within 30 days by phone, mail, e-mail...the debt gets tossed out. I guess there was a dude from the credit bureau reading these...that explains the thumbs down lol.
Answered by janet h - Thu Jun 5 00:03:22 2008
Q. I have 3 old medical bills from 4 years ago haunting my credit ranging from $1100 to $2000 each. Is there anything I can do to settle with them or try to delete them off. Where can I find self help or letters to write etc..any input would be great.
Asked by lbcali - Wed Jun 4 23:49:56 2008 - - 6 Answers - 0 Comments
A. You can call them and set up a payment plan or you can try to dispute them with the credit bureau. When you dispute something and if they have not contacted you within 30 days by phone, mail, e-mail...the debt gets tossed out. I guess there was a dude from the credit bureau reading these...that explains the thumbs down lol.
Answered by janet h - Thu Jun 5 00:03:22 2008
Does owed medical bills really matter when buying a house?
Q. I would like to purchase a home but I have heard I should pay off all owed medical bills on the other hand I have heard that they dont look at it. What do you know/think?
Asked by Sara - Thu Jan 17 16:19:58 2008 - - 4 Answers - 0 Comments
A. Hey guh! Step daddy told us that anything on your credit has to be payed off before you can qualify for a home loan. Whomever you are buying the house through will run your credit and tell you what you need to pay off in order to qualify! Have them check all 3 credit bureaus b/c all 1 may have somthing that the other 2 don't have on them. All 3 have to be cleared.
Answered by Durty's Wifey - Fri Jan 18 09:40:05 2008
Q. I would like to purchase a home but I have heard I should pay off all owed medical bills on the other hand I have heard that they dont look at it. What do you know/think?
Asked by Sara - Thu Jan 17 16:19:58 2008 - - 4 Answers - 0 Comments
A. Hey guh! Step daddy told us that anything on your credit has to be payed off before you can qualify for a home loan. Whomever you are buying the house through will run your credit and tell you what you need to pay off in order to qualify! Have them check all 3 credit bureaus b/c all 1 may have somthing that the other 2 don't have on them. All 3 have to be cleared.
Answered by Durty's Wifey - Fri Jan 18 09:40:05 2008
Are there any stipulations to claiming deductions for medical bills?
Q. I've never claimed medical bills and last year my wife had about 10,000 in med bills. Do the bills have to be paid before you can claim them on your taxes, or do you claim the unpaid amount? Are there any other stipulations I should know? Thanks.
Asked by Mastermind - Mon Jan 25 12:46:55 2010 - - 2 Answers - 0 Comments
A. You can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your AGI (Form 1040, line 38). Example. Your AGI is $40,000, 7.5% of which is $3,000. You paid medical expenses of $2,500. You cannot deduct any of your medical expenses because they are not more than 7.5% of your AGI. They must be paid in 2009.
Answered by Willie J - Mon Jan 25 12:57:54 2010
Q. I've never claimed medical bills and last year my wife had about 10,000 in med bills. Do the bills have to be paid before you can claim them on your taxes, or do you claim the unpaid amount? Are there any other stipulations I should know? Thanks.
Asked by Mastermind - Mon Jan 25 12:46:55 2010 - - 2 Answers - 0 Comments
A. You can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your AGI (Form 1040, line 38). Example. Your AGI is $40,000, 7.5% of which is $3,000. You paid medical expenses of $2,500. You cannot deduct any of your medical expenses because they are not more than 7.5% of your AGI. They must be paid in 2009.
Answered by Willie J - Mon Jan 25 12:57:54 2010
When it comes to the medical bills for a child, do separated parents split the costs down the middle?
Q. My fiance and his ex have a 5 year old child together. They were never married, but my fiance pays child support and she secures health insurance coverage. Who is responsible for the medical bills and if both, how is it divided? Thanks!
Asked by Jessica - Sat Apr 17 14:20:49 2010 - - 2 Answers - 0 Comments
A. That's fully dependent on the court order. To learn a father's rights, join Dads House in Yahoo Groups. It's free to join and you associate with other fathers going through the same thing. Child Support Modifications & Arrears Negotiating The System Modifying The Order Federal Handbook For Non-custodial Parents Rebuttable Presumptions Modifications Child Support Trust Funds Contempt Of Court Hearings Retroactive Modifications Of Arrears Tax Info When Support Orders End Modifications Due to New Child Modification Due Remarriage \\\
Answered by George McCasland - Tue Apr 20 02:10:31 2010
Q. My fiance and his ex have a 5 year old child together. They were never married, but my fiance pays child support and she secures health insurance coverage. Who is responsible for the medical bills and if both, how is it divided? Thanks!
Asked by Jessica - Sat Apr 17 14:20:49 2010 - - 2 Answers - 0 Comments
A. That's fully dependent on the court order. To learn a father's rights, join Dads House in Yahoo Groups. It's free to join and you associate with other fathers going through the same thing. Child Support Modifications & Arrears Negotiating The System Modifying The Order Federal Handbook For Non-custodial Parents Rebuttable Presumptions Modifications Child Support Trust Funds Contempt Of Court Hearings Retroactive Modifications Of Arrears Tax Info When Support Orders End Modifications Due to New Child Modification Due Remarriage \\\
Answered by George McCasland - Tue Apr 20 02:10:31 2010
Can you file bankruptcy on medical bills?
Q. I live in the state of Missouri and I have a large debt wrapped up in medical bills. ( a lil over 10,000) I have asked around but always get different answers. Can I file bankruptcy on my medical bills?
Asked by MOMMY MILLER - Mon Feb 8 16:49:39 2010 - - 4 Answers - 0 Comments
A. Medical bills will generally be included in bankruptcy filing, but whether or not they get wiped out or put on a long payment plan depends on your ability to repay them and the type of bankruptcy that you file. One thing to consider, though, is that bankruptcy will ruin your credit for a long time, and in the big scheme of things, $10,000 is not a huge debt. You may want to see if you can do something with a payment plan on your own to pay this down and not ruin your credit. Even if you only managed $200 a month (or $50 a week) you could get this paid down in five years. Most people if they try really hard can find a way to reduce their other expenses or increase their income by $200 a month. I bet you, or someone you know, has paid… [cont.]
Answered by Lauren F - Mon Feb 8 16:56:46 2010
Q. I live in the state of Missouri and I have a large debt wrapped up in medical bills. ( a lil over 10,000) I have asked around but always get different answers. Can I file bankruptcy on my medical bills?
Asked by MOMMY MILLER - Mon Feb 8 16:49:39 2010 - - 4 Answers - 0 Comments
A. Medical bills will generally be included in bankruptcy filing, but whether or not they get wiped out or put on a long payment plan depends on your ability to repay them and the type of bankruptcy that you file. One thing to consider, though, is that bankruptcy will ruin your credit for a long time, and in the big scheme of things, $10,000 is not a huge debt. You may want to see if you can do something with a payment plan on your own to pay this down and not ruin your credit. Even if you only managed $200 a month (or $50 a week) you could get this paid down in five years. Most people if they try really hard can find a way to reduce their other expenses or increase their income by $200 a month. I bet you, or someone you know, has paid… [cont.]
Answered by Lauren F - Mon Feb 8 16:56:46 2010
How do I pay Medical bills left from a passed away parent?
Q. My family has just suffered a Great loss of our Mother in April 2007. We have incurred many burdening bills from our loss - ranging from the Funeral costs to remaining Medical care and Hospital Bills, to now home bills that have been left. We do not want to sell our remaining house, but have bills piling up. Can someone help us with financial help support with donations or assistant to find available funds to pay these awaiting bills?
Asked by Richard O - Wed May 2 03:32:36 2007 - - 12 Answers - 0 Comments
A. Tell the hospital, funeral home, doctors and pharmacy what the situation is in a nut shell there is no money. Many times they will write off what you owe them or decrease it considerably. You might be able to declare bankruptcy and save the house. Check with an attorney.
Answered by don n - Wed May 2 03:44:32 2007
Q. My family has just suffered a Great loss of our Mother in April 2007. We have incurred many burdening bills from our loss - ranging from the Funeral costs to remaining Medical care and Hospital Bills, to now home bills that have been left. We do not want to sell our remaining house, but have bills piling up. Can someone help us with financial help support with donations or assistant to find available funds to pay these awaiting bills?
Asked by Richard O - Wed May 2 03:32:36 2007 - - 12 Answers - 0 Comments
A. Tell the hospital, funeral home, doctors and pharmacy what the situation is in a nut shell there is no money. Many times they will write off what you owe them or decrease it considerably. You might be able to declare bankruptcy and save the house. Check with an attorney.
Answered by don n - Wed May 2 03:44:32 2007
Why should our soldiers have to pay for medical bills of injuries sustained in war?
Q. Why should our soldiers have to pay for medical bills of injuries sustained in war while illegal immigrants come into our country and get free medical care without any questions about it? Is there something I am missing here? Why is Obama doing this?
Asked by * - Thu Mar 19 02:10:02 2009 - - 10 Answers - 0 Comments
A. That is the most disgraceful thing I have ever heard. Not only are they serving our country, but they are also employed by our government and employers Are responsible for injuries on the job. and illegal immigrants are nothing more than a drain on our country and should be deported.
Answered by FLbeachGrl - Thu Mar 19 02:19:54 2009
Q. Why should our soldiers have to pay for medical bills of injuries sustained in war while illegal immigrants come into our country and get free medical care without any questions about it? Is there something I am missing here? Why is Obama doing this?
Asked by * - Thu Mar 19 02:10:02 2009 - - 10 Answers - 0 Comments
A. That is the most disgraceful thing I have ever heard. Not only are they serving our country, but they are also employed by our government and employers Are responsible for injuries on the job. and illegal immigrants are nothing more than a drain on our country and should be deported.
Answered by FLbeachGrl - Thu Mar 19 02:19:54 2009
Can you cash out your 401K tax free to pay medical bills?
Q. I have to have a $25,000 surgery not covered by insurance. I'm thinking of cashing out my 401K and someone told me that you can do it tax free for medical bills. Is this true? I'm only 25 so it's not like I can't build back up my 401K...
Asked by skybelle24 - Tue Jan 16 14:45:12 2007 - - 8 Answers - 0 Comments
A. Your source may be close to the truth, if your other income isn't too high. Is the surgery deductible? Cosmetic surgery is not deductible. If you cash out your 401k for nondeductible medical expenses, you will pay income tax and a 10% penalty on the withdrawal. I assume that you will have a $25,000 withdrawal for deductible medical expenses. To the extent that your medical expenses exceed 7.5% of your adjusted gross income, that amount of the withdrawal will not be subject to the 10% penalty. So the penalty in your example is .75% of your AGI. On a $50,000 AGI, that is just $375. Not much penalty at all. The entire withdrawal figures into your AGI. But if you itemize (and you will with a medical bill this size), you will deduct… [cont.]
Answered by ninasgramma - Wed Jan 17 05:22:20 2007
Q. I have to have a $25,000 surgery not covered by insurance. I'm thinking of cashing out my 401K and someone told me that you can do it tax free for medical bills. Is this true? I'm only 25 so it's not like I can't build back up my 401K...
Asked by skybelle24 - Tue Jan 16 14:45:12 2007 - - 8 Answers - 0 Comments
A. Your source may be close to the truth, if your other income isn't too high. Is the surgery deductible? Cosmetic surgery is not deductible. If you cash out your 401k for nondeductible medical expenses, you will pay income tax and a 10% penalty on the withdrawal. I assume that you will have a $25,000 withdrawal for deductible medical expenses. To the extent that your medical expenses exceed 7.5% of your adjusted gross income, that amount of the withdrawal will not be subject to the 10% penalty. So the penalty in your example is .75% of your AGI. On a $50,000 AGI, that is just $375. Not much penalty at all. The entire withdrawal figures into your AGI. But if you itemize (and you will with a medical bill this size), you will deduct… [cont.]
Answered by ninasgramma - Wed Jan 17 05:22:20 2007
From Yahoo Answer Search: 'medical bills'
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Tue, 27 Jul 2010 07:24:01 GMT+00:00
Travel Daily News International Even a basic policy costing just 6.18 will cover you for medical bills of up to 10 million including ambulance, surgery, emergency dental treatment and ...
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Craig Schiffer
ue, 29 Sep 2009 08:06:43 GM
This term is one of the most commonly misunderstood terms in . medical. finance. What this term actually denotes is bankruptcy which a person had to file due to his inability to pay his . medical bills. . As per studies conducted, ...
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