I live in Houston, TX. I have been on disability
and have been receiving monthly non-taxed $3040.60 (60% of my original salary) since January. I received a bonus in March 2011 for the previous year's work, which was already taxed. I have been going to MD Anderson for medical
treatment. Due to a misunderstanding my company revoked my health insurance on March 31, 2011. I did not receive this news until June, so I was still going to the doctor. Just recently, MD Anderson (the famous cancer facility) sent me a $12,618.00 bill for visits and procedures done after March 31, 2011. MD Anderson gave me basically two options. I can set up a payment plan with them and pay the full asking amount over time or I could pay a lesser amount (example: what the insurance company would agree to pay them. Typically way less of course maybe 80%). I would have to pay in full now in 2011 if I wanted to pay the lesser amount. Since I have not paid taxes
on the monthly $3,040.60, I will have to pay the IRS
in April. My question is. . . is it smarter to pay the lesser amount of medical bills in 2011 in order to get a deduction
from my taxes in April or should I wait and pay the higher bill on a payment plan?
On a more personal
note, they have still not diagnosed me after all of this time, so they are basically asking me to "buy a car" for nothing. I am still sick. I will have health insurance again starting January 2012.
Any help would be greatly appreciated. Thank you.