David M.Green Bookkeeping and Tax Service -

Recent Posts

Like Harvey, Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Irma
IRS Has Refunds Totaling $1 Billion for People Who Have Not Filed a 2013 Federal Income Tax Return
File Without 1095-B or 1095-C
6-Month Extension Period for Calendar Year C Corporations
Early Withdrawals from Retirement Plans
powered by

My Blog

Is Charity Care Considered Forgiven Debt?

Many hospitals receive government funds that are collected from the community through various tax programs, and these hospitals are required by federal and state governments to provide uninsured and low-income patients with free or reduced-cost health care. This is also known as "charity care." The hospitals have guidelines and requirements to determine w...ho is qualified to receive this type of medical care.

Generally, charity care is defined as provided health care for which patients are not billed, and there is no expectation of payment or reimbursement on the part of the patient. Because there is no liability for payment, this type of benefit received is not considered a forgiven debt. In addition, because the health care services are paid through governmental tax programs, the value of this health care is not considered income and does not need to be reported on Form 1040.

0 Comments to Is Charity Care Considered Forgiven Debt?:

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment