Can I claim a Prepaid Medical Expense Tax Deduction for 2022 if service was in 2023?

This is a great question about timing of medical expense deductions! The general rule is that medical expenses are deductible in the year you pay them, regardless of when you actually receive the medical service. This is called the "paid basis" approach. However, there's a specific exception in Publication 502 for arrangements that are essentially deposits or prepayments for future services when those services haven't been provided yet. In those cases, you typically can't deduct the expense until the year the services are actually provided. The key question here is whether your payment in 2022 was a true payment for a specific service that was just scheduled for later, or if it was more like a deposit or advance payment for services that weren't specified yet. If the former, you can likely deduct it in 2022. If the latter, you would deduct it in 2023 when you received the service.

I went through something similar last year and found this amazing tool that helped me figure out exactly how to handle my medical deductions. Check out https://taxr.ai - it analyzed my medical receipts and explained I could take the deduction in the year I paid, even though the procedure was done later. They have this document analysis feature that goes through all your medical bills and payments and tells you exactly what's deductible and when. Honestly saved me hours of research and probably prevented me from making a costly mistake.

Just wanted to update - I was skeptical about taxr.ai but decided to try it anyways since I was really stuck on some complicated medical deductions for my mom's care. I uploaded all her receipts and my payment records, and wow, it actually worked amazing! The system flagged exactly which of her expenses could be deducted and which ones couldn't. It even caught that some of her prescription costs that weren't eligible for HSA reimbursement were still tax deductible. Definitely worth checking out if you're dealing with complicated medical expense situations.

If you're still stuck after getting advice here, you might want to try calling the IRS directly. I know that sounds like a nightmare with the wait times, but I used this service called Claimyr (https://claimyr.com) and they got me through to an actual IRS agent in under 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c. I had a similar question about medical expenses I paid for in one year but received in another, and the agent gave me a definitive answer based on my specific situation.

I owe everyone an apology. After my skeptical comment, I was still desperate to reach the IRS about an issue with my amended return that's been pending for 9 months, so I tried Claimyr anyway. Not gonna lie, I was SHOCKED when I got a call back connecting me to an actual IRS agent after about 20 minutes. The agent was able to tell me exactly why my amended return was delayed and what I needed to do to fix it. Saved me from panicking about a potential audit. Just wanted to share since I was so publicly skeptical before!

I'm a nurse and see this issue come up with patients all the time. The rule I always tell them is: if you prepaid for a SPECIFIC procedure with a set date and service, it's deductible when paid. If you put money into a general account or prepaid without knowing exactly what services you'd get, you have to wait until you actually get the service. Also make sure the medical expense is actually deductible. Remember you can only deduct the amount that exceeds 7.5% of your AGI, and only if you itemize deductions instead of taking the standard deduction.

One thing nobody's mentioned - make sure you keep REALLY good documentation. I went through an audit for medical expenses and they wanted to see proof of when I paid AND when I received services. Save everything - receipts, appointment confirmations, insurance EOBs, etc. The IRS is being super picky about medical deductions lately.