How can I pay someone’s medical expenses and still qualify for the medical expense gift tax exclusion?

To qualify for the medical expense gift tax exclusion, one has to give the payment directly to the medical provider. For example, one can make the payment out directly to the provider or they can give the check to a relative, as long as it is only payable to the provider. You should not “reimburse” the patient for an expense the patient already paid for or it will not be covered.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.