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Can I write off difference for in-network providers?

Forum|Forum|6 years ago
June 1, 2019
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I bill insurance companies my usual rate (i.e. $100) and the in-network provider pays the negotiated rate (i.e. $75). Can I write off the difference on my taxes (e.g. $25)?

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Best answer by rjs

The difference is already written off because you report only $75 of income instead of $100. Therefore you are not paying tax on the $25 that you did not receive. It's already deducted from your taxable income because it was never reported as income. You can't deduct it again.

rjsAnswer

The difference is already written off because you report only $75 of income instead of $100. Therefore you are not paying tax on the $25 that you did not receive. It's already deducted from your taxable income because it was never reported as income. You can't deduct it again.