No deduction for billed but unpaid fees.

June --

I am a therapist. I notice that many doctors and dentists bill patients for an amount greater than the amount requested from the patient, then show the difference on the statement of account as a "write-off." Is this a write-off for their federal tax return?

I frequently "slide" my fee downwards to accommodate less fortunate persons and wonder if I can deduct this "lost revenue" as some sort of a write off.

Thanks, John


Hello John,

There is no deduction for billed but unpaid fees.

These posts on my blog cover similar situations and will help you understand why there is no deduction.
Deducting an Attorney's Time
and
No deduction for donated work or services

Don't let the lack of a deduction stop you from giving the less fortunate a break. You're my kind of guy!

Best,

June