Making medical contributions for others

[jgombos]

What is the name of your state (only U.S. law)? OH, CA

Is there any way to get a tax break for contributing to someone elses medical expenses? I have two similar situations:

* A friend recently survived a hard attack. He has a 80/20 medical plan, and it will cost him his home to pay the 20%. Mutual friends are organizing a fund raiser. Is there any way for them to set up the fundraiser in a way that all contributors can get a tax break? If not, (or if the organizers of the fund raiser don't do anything beyond simply collecting) is there anything I can do to get a tax break on my own contribution? This will be one large single contribution.

* A family member cannot afford $800/month prescription drugs. Is there any way I can contribute to that, and get a tax break? This would probably be an ongoing contribution.

[edit]
I just read here ( http://www.thefundraisinginstitute.com/fundraising-medical-expenses ) that it's possible to partner with a non-profit org to make contributions deductible. I remain interested in other creative options as well, if anyone knows of any. Also, if anyone knows of any NPO's in particular that would be open to this sort of scheme in the above cases, please let me know. Thanks!

 

[LdiJ]

What is the name of your state (only U.S. law)? OH, CA

Is there any way to get a tax break for contributing to someone elses medical expenses? I have two similar situations:

* A friend recently survived a hard attack. He has a 80/20 medical plan, and it will cost him his home to pay the 20%. Mutual friends are organizing a fund raiser. Is there any way for them to set up the fundraiser in a way that all contributors can get a tax break? If not, (or if the organizers of the fund raiser don't do anything beyond simply collecting) is there anything I can do to get a tax break on my own contribution? This will be one large single contribution.

* A family member cannot afford $800/month prescription drugs. Is there any way I can contribute to that, and get a tax break? This would probably be an ongoing contribution.

[edit]
I just read here ( Fundraising for Medical Expenses | The Fundraising Institute ) that it's possible to partner with a non-profit org to make contributions deductible. I remain interested in other creative options as well, if anyone knows of any. Also, if anyone knows of any NPO's in particular that would be open to this sort of scheme in the above cases, please let me know. Thanks!

The bolded portion could be possible. Medical expenses for family member, if paid directly to the provider (ie the pharmacy if its a prescription) can be included on schedule A, assuming that your overall medical expenses are higher than 7.5% of your AGI.

 

[jgombos]

The bolded portion could be possible. Medical expenses for family member, if paid directly to the provider (ie the pharmacy if its a prescription) can be included on schedule A, assuming that your overall medical expenses are higher than 7.5% of your AGI.

Interesting.. I didn't realize schedule A medical expenses could benefit a family member. I'd like to know if Belgian income is part of my AGI in the US. The tax treaty between the US and Belgium effectively enables the first 82k/year in Belgian earnings to go untaxed in the US. So if the Belgian income (which is most of my income) does not count, then it may be quite possible for my medical expenses to exceed the 7.5% mark.

 

[LdiJ]

Interesting.. I didn't realize schedule A medical expenses could benefit a family member. I'd like to know if Belgian income is part of my AGI in the US. The tax treaty between the US and Belgium effectively enables the first 82k/year in Belgian earnings to go untaxed in the US. So if the Belgian income (which is most of my income) does not count, then it may be quite possible for my medical expenses to exceed the 7.5% mark.

You would have to include the Belgian income on your return, and then file form 2555 to exclude the portion that is excludable. Since the exclusion comes before AGI is calculated, the foreign earned income would not be part of your AGI.

However, if your standard deduction and personal exemptions would wipe out the rest of your income anyway, filing a schedule A may not help you.