Relief from medical debt doesn’t top the typical holiday wish list. But help with unexpected medical bills could be a welcome gift for millions of Americans.
Four in 10 U.S. adults received a surprisingly high medical invoice within the last year, according to a September survey from the nonprofit Kaiser Family Foundation. And medical bills topped the list of financial commitments that Americans are afraid they won’t be able to afford, ahead of prescription drugs, rent or gas, according to the results.
Here are some tips for helping a loved one with their medical expenses – and potentially lowering your own tax bill along the way.
WHO GETS THE MONEY?
When helping someone shoulder medical bills, financial experts say the most important step is to make sure you pay the money directly to the hospital, physician or medical provider. Those payments are exempt from federal reporting and tax requirements, but only if they go to the business or person that provided the service.