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Personal Finance (Not Investing) • What does IRS consider direct payment? (medical)

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The IRS allows me to pay somebody else's medical expenses without being considered a gift which would count towards the annual gift exclusion. It is required that I pay the provider directly. If I add the person as an authorized user on my credit card, and they pay for prescriptions, co-pays, etc. with that credit card, would this be considered a direct payment to the provider by the IRS? I would pay all credit card bills.

Second question. Can I pay for COBRA coverage or ACA premiums in the same manner? IIRC, that might require allowing an ACH billing direct to my checking account. Thanks.

Statistics: Posted by FreddieFIRE — Thu Sep 18, 2025 1:09 pm — Replies 0 — Views 42



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