Medical expenses for deceased

[Happy Camper]

TP passed away in late Jan 2021. Medical expenses were incurred in 2020 but not paid. I know you can elect to treat any medical expenses paid out of the estate within one year of the date of death as an itemized deduction on the decedent's Form 1040, but can you elect to deduct the 2020 medical expenses on the 2020 return? Or does the 'clock start running' on the date of death and that election can only be made when the final return is filed.

Since the TP passed in Jan 2021, there will probably not be much income to offset the unpaid 2020 expenses. TP has a trust, can the medical expenses be deducted on the trust return (1041)? Estate is not over the threshold to be subject to estate taxes...

TYIA

[Lion]

https://www.irs.gov/publications/p50...link1000178880

Decedent

Medical expenses paid before death by the decedent are included in figuring any deduction for medical and dental expenses on the decedent's final income tax return. This includes expenses for the decedent's spouse and dependents as well as for the decedent.

The survivor or personal representative of a decedent can choose to treat certain expenses paid by the decedent's estate for the decedent's medical care as paid by the decedent at the time the medical services were provided. The expenses must be paid within the 1-year period beginning with the day after the date of death. If you are the survivor or personal representative making this choice, you must attach a statement to the decedent's Form 1040 or 1040-SR (or the decedent's amended return, Form 1040-X) saying that the expenses haven't been and won't be claimed on the estate tax return.

.Qualified medical expenses paid before death by the decedent aren't deductible if paid with a tax-free distribution from any Archer MSA, Medicare Advantage MSA, or health savings account..

What if the decedent's return had been filed and the medical expenses weren't included?

Form 1040-X can be filed for the year or years the expenses are treated as paid, unless the period for claiming a refund has passed. Generally, a claim for refund must be filed within 3 years of the date the original return was filed, or within 2 years from the time the tax was paid, whichever date is later.

Example.

John properly filed his 2019 income tax return.He died in 2020 with unpaid medical expenses of $1,500 from 2019 and $1,800 in 2020. If the expenses are paid within the 1-year period, his survivor or personal representative can file an amended return for 2019 claiming a deduction based on the $1,500 medical expenses. The $1,800 of medical expenses from 2020 can be included on the decedent's final return for 2020.

What if you pay medical expenses of a deceased spouse or dependent?

If you paid medical expenses for your deceased spouse or dependent, include them as medical expenses on your Schedule A (Form 1040) in the year paid, whether they are paid before or after the decedent's death. The expenses can be included if the person was your spouse or dependent either at the time the medical services were provided or at the time you paid the expenses.

[Happy Camper]

Thanks Lion! The example is exactly my issue! I appreciate you giving me so much detail & the link!