Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

If someone recieves a gift card and then uses it in medical

bills I know you can...
If someone recieves a gift card and then uses it in medical bills I know you can write it off on medical for taxes but what if you find out later that money was stolen ? Can the IRS come back on them for that write off? The person who have the gift cards is having to amend their taxes to pay the income on them now
Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
10/15/2013
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,684
Experience: Taxes, Immigration, Labor Relations
Verified

Lev :

Hi and welcome to our site!
Gifts are not taxable income in the US.
But stolen property is treated as illegal income. Regardless of criminal penalties - illegal income is taxable and is added to the taxable income.

Lev :

So - the person who steel the money - if confirmed - will be required to include that amount into his taxable income.

Customer:

but what does that do to the people who wrot if off as an expense but didn't know it was stolen

Customer:

will the irs come back on them or could they

Lev :

If you received the card as a gift - that is not a taxable income.
It doesn't matter how you used funds.
If the card was stolen - you might be required to return it back - but that is not your taxable income - because you did nothing wrong.

Customer:

they were gift cards they purchased through work not credit cards does that make sense

Customer:

just trying to see what the people need to do that was given this gift. the lawyer is asking the recievers of these gifts to write down how much roughly was given to them. just want to make sure they aren't able to come back on them. trying to be a good friend

Customer:

hello

Customer:

I realize it isn't taxable but can anything be done to them sense they wrote it off as a medical expense. that is what it went towards. have reciepts

Lev :

If these cards are stolen - you might be asked to pay back by a criminal court.
That is not a concern of the IRS. From the IRS prospective - that is a gift and it is not taxable.
How to use funds and if your expenses are deductible - that would not be affected.
Because teh gift i snot taxable - if you will be required to pay it back - there will not be any deduction from that repayments.

Customer:

the person who stole the money is working with them and is paying back whatever they decide on. they aren't asking the recievers anything except a written statement of what was given to them

Lev :

Ok - t5hat will make issues less complicated. So - the person who stole the property will pay back from his/her own funds - and gift previously made would not be affected.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,684
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago
So if someone gives you gift card or cash or whatever and u use it on a deductible expense you can deduct it. That's what u r saying right

What I said - the gift in not TAXABLE income for the recipient,
However the donor generally may not deduct the gift,
Indeed - only gifts to qualified charitable organizations are deductible.
But gifts to any specific persons or gifts that benefit any specific person may not be deducted by the donor.

 

If you paid medical expenses - such expenses are deductible regardless which money you used. Bt that doesn't mean you are deducting a gift - you are deducting your medical expenses that you paid.

Ask Your Own Tax Question
Customer reply replied 4 years ago
I'm not asking if the money is taxable income I am trying to ask if the recipent receives a gift like cash or a gift card and they use it to pay a medical bill can the recipent include that payment as a medical deduction when they add up all their medical expenses for that year
Yes - the money used to pay medical bills are deductible for the payer.
That is regardless if the money were gifted or received any other way.
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,684
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,684
30,684 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I use money credit cards with low APR offers and 3% - 4%
I use money credit cards with low APR offers and 3% - 4% transactions fee to invest in stocks. It may be a different batch of money but I keep circulating the credit card debt like that and don't sell… read more
abci168
abci168
Principal
27 satisfied customers
I am disabled, i have no taxable income but i was told that
hi, i am disabled, i have no taxable income but i was told that i could get the proff of all the medication i had to buy this and get money back … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
For my timeshare, is there any place to use/deduct the
Jim,For my timeshare, is there any place to use/deduct the annual maintenance fees?Thanks!… read more
taxmanrog
taxmanrog
Master\u0027s Degree
776 satisfied customers
I have a question about the business tax deduction for using
I have a question about the business tax deduction for using a car. It's a two-part question. The first is, as an independent contractor emergency physician, I drive 86-120 miles away from home, stay … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Are non insurance covered medical expenses deductible? Are
are non insurance covered medical expenses deductible? … read more
abci168
abci168
Principal
27 satisfied customers
The 2018 tax law will allow homeowners to deduct property
The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. What does this mean? w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Is the deduction for medical expenses on Schedule A repealed
Is the deduction for medical expenses on Schedule A repealed under the new tax law & can health insurance premiums for a Schedule C proprietor still be deducted on page 1 of Form 1040?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Have a tax question about what is considered taxable income.
Have a tax question about what is considered taxable income. What is your fee? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Can I deduct a medical expense in 2017 if paid in 2017 for
Can I deduct a medical expense in 2017 if paid in 2017 for my 2018 medical premiums . In other words, I am paying in advance.… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
This is an income tax question. I am thinking of Deducting
This is an income tax question. I am thinking of Deducting next years giving to church this year with pending changes to tax law. As I recall, higher income levels reduce schedule allowable deductions… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Suppose my taxable income in 220,000 this year and the tax
Suppose my taxable income in 220,000 this year and the tax rate is X up to 200K, but Y for 200and over, do I pay Y on the full 220K or just that above 200K? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Are medical equipment purchesed tax deductable. I have been
I have been prescribed a portable oxygen generator is this equipment deductable … read more
abci168
abci168
Principal
27 satisfied customers
Can house maintenance and property taxes be deducted on form
Hello. Can house maintenance and property taxes be deducted on form 1041 for a house owned by decedent prior to the Executors selling it? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If a charitable organization offers a lifetime membership,
If a charitable organization offers a lifetime membership, which would otherwise not be deductible because related current and future tangible benefits approximate the cost, is any part of the members… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Is there a way to carry over medical expenses to subsequent
Is there a way to carry over medical expenses to subsequent years taxes? I know the answer is typically no but we will have very high expenses. Specifically, we will have roughly $1.5 million in medic… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Non grantor trust pays qualified medical expenses for
Non grantor trust pays qualified medical expenses for beneficiary. Since the trust can not deduct, are the expenses deducted on the beneficiary's 1040 as qualified medical expenses? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
505 satisfied customers
Deductible medical expenses - I have two questions
Deductible medical expenses -Good Afternoon,I have two questions concerning medical expenses.1) If a doctor writes a prescription for a patient to hire a personal trainer to have him exercise x times … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x