Wednesday, June 27, 2007

Taxes & Medical Bills

An individual asked me what the tax ramifications were if individuals wanted to help pay medical bills of another individual. What would be a way for it to occur so it would not 'hurt' (taxes) the person it is intended to help.

I just got off the phone from the H&R Block tax help line.

They said that the best avenue to go with from the party giving money and the party receiving the benefit would be to do the following:

Individuals give to a church and have the church place it in a designated account
(if the church is willing) and then the church pays the hospital bill themselves.

This way, the individuals can have their contributions counted in the church bracket and the individual receiving the gift would not have to show income because it is not going to them - but to the hospital.

As, I think about it, this is what happened when St. Jacob helped us in 2000 with Jacob's bills. Individuals gave to the church, I gave them the med bills and the church wrote the checks to the doctors and hospitals.

7 comments:

Rodrigo said...
This comment has been removed by a blog administrator.
Anonymous said...

Jeff, when will you be able to check your email.

anonymous in bham

Jeff Greathouse said...

Anonymous in B'ham:

I will be on some tonight and on / off tomorrow as I finalize everything for the move:

- final boxes
- picking up moving van
- boxes on mini van
- etc

Anonymous said...

Good. Please check your email

Anonymous in bham

Jeff Greathouse said...

Thanks for the email. It was good to hear from you. We miss seeing you guys a bunch !!

Angie said...

freak me out. i was just thinking about this when i read grace's page ( had to do some catching up) so will your new church possibly be doing this...if so...what is the addy?

Jeff Greathouse said...

Ang:

I emailed you. I think that the church would be willing to do this. I will let you know when we settle in and I ask them.