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There is no limitation to get a loan from family members if the loan amount is less than $10,000. For loans above $10,000 - if there is no interest charged - the forgone interest is in the nature of a gift.
You still may deduct your medical expenses on your tax return.
Can the loan be done in monthly installments? What documentations need to be done to satisfy the IRS with this type of loan. The family member's AGI is less than 50K. And the medical loans covering Rxl, doctors, hospital, etc. are extensive but the familiy does not qualify for low income situation.
There is no limitation or special requirements for the loan. The loan is not considered a taxable income - as long as you will pay it back..
What is being planned is the family member will pay to the doctors, but will keep accurate records to keep track of the amount of loan. This will probably go on for about 5 years as the total medical costs for the emergency medical situation totals over15K
You may want to sign a promissory note to your relatives to ensure about your intention to pay the money back. But there is nothing is needed to be reported to the IRS.
I will get the family member who needs help to sign a promissory note. I just want the person to be able to dot all the i's and cross t's! That is something I had not thought of!!!
There is nothing to be reported to the IRS - not for you and not for your relative.
Thanks for your help.