If a family takes out a loan to pay medical expenses, can the PHA use the payment on the loan as a medical expense deduction?
The source of income that a family will use to pay a medical expense, such as a loan, does not impact the eligibility of the expense itself. Just like any other medical expense, a PHA would be required to determine whether or not the family qualifies as an elderly or disabled family (see 24 CFR 5.403) and has eligible medical expenses, per 24 CFR 5.611, and then calculate and verify those expenses based on the PHA’s adopted policies. 42. Question: What happens if a PHA calculated a medical expense deduction based on projected medical expenses, but the family then does not incur the medical expenses? Can the PHA calculate an underpayment by the family? What recourse does the PHA have to rectify this situation? Answer: All components of annual and adjusted income, including medical expenses are, by definition, based on what is anticipated for the 12-month period following admission or annual reexamination, per 24 CFR 5.603. Therefore, it is not only possible, but likely that actual expen
Related Questions
- Can I participate in the Healthcare Expense Reimbursement Account and also take a deduction for medical expenses on my tax return?
- If a family takes out a loan to pay medical expenses, can the PHA use the payment on the loan as a medical expense deduction?
- What happens if a family makes a late payment or doesn’t pay back the loan?
