TAX TIME is COMING... have a question..

Discussion in 'Chit Chat' started by Kimba4318, Jan 16, 2007.

  1. Kimba4318

    Kimba4318 New Member

    Can we write off medical bills? How about prescription co-pays and doctor co-pays. Probably too good to be true and I am sure I have not kept good enough paperwork, but just wondering.
  2. mollystwin

    mollystwin New Member

    Medical expenses can be written off only the amount that exceeds 7.5% of Adjusted gross income. This would include doctor and prescription co-pays.

    For example, if your adjusted gross income is 50,000 then you could write off anything over 3,750 which is 7.5% of 50,000. So not many people are able to write off medical expenses which is really a shame. [This Message was Edited on 01/16/2007]
  3. boltchik

    boltchik New Member

    We asked our tax person last year about writing off meds, it was some crazy amount like, only if it exceeds $4500.00. Well, with insurance it's nowhere near that amount. My husband actually has way more meds than I do. I mostly take over the counter stuff. But all in all, I bet we spend about $1,000-1200.00 in co-pays(for meds)per year. He used to be able to write off supplements (as part of keeping in shape for his firefighter job), now they don't do it anymore. You would think we could, since it is all part of helping us feel better, but I don't think so. At least not here in California.

    Good luck with your taxes, our appointment is next month. Our tax lady is very good, so I always look forward to saving some, and then doing something a little fun with some of the refund. Have a great night, Kim
  4. Catseye

    Catseye Member

    You can write them off if you itemize your deductions instead of taking the standard deduction. Whichever is larger, you want to use. Your standard deduction for married is $10,300. So if you can get your itemized deductions to add up to more than that, then use them.

    That means medical bills over 7.5% of Adjusted Gross Income, line 38 of the 1040. This includes health insurance premiums, medical bills, dental bills, eyeglasses, prescriptions, long term care insurance premium, etc. Add in all these bills for the children, too. But it's only what came out of your pocket, the co-pays or what insurance paid does not count. Also, medical mileage to and from medical care is either gas and oil costs or 18 cents per mile.

    To the deductible medical bills, add state and local income taxes paid, charitable deductions, unreimbursed business expenses, mortgage interest, income tax preparation fees and property taxes.

    There are some other uncommon things like casualty and theft losses and investment interest. But the above should give you an idea if you'll be able to itemize or not.

    If all these add up to more than $10,300, then you use them on Schedule A.

    Here's the IRS link, don't worry, it's easy reading:

    This will answer any questions you might have about itemizing, it goes into more detail than I did.

    Any more questions from you or anyone else? This is what my husband and I did for 15 years before I got ill and then we had to sell our H&R Block offices and retire early on disability!

    [This Message was Edited on 01/16/2007]
  5. Kimba4318

    Kimba4318 New Member

    Darn = you all are good.
    Thanks a bunch!
    I will see how it works out. The record keeping is the bad part... what would I need to supply the accountant for this? Any thoughts?

    Thanks Again
  6. abcanada

    abcanada New Member

    If you have lost anything, as I do trying to keep track of 6 people, you can call store or doc & get them to write you up a reciept, or ask for a statement of everything since last year. I'm just getting into taxes & am canadian. I realized that I'm eligable for a disability write off. Maybe look into that too. Get on the phone to the revenue agancy, Take care, Laura
  7. Catseye

    Catseye Member

    The accountant only needs your total amounts, he doesn't need to see your receipts, only the IRS will want to see them if you get audited. And if it came to that, you would always have plenty of time to gather your info. But that doesn't happen often.

    My pharmacist used to give everybody a statement at the end of the year showing what they spent in his store, maybe yours would do the same?

    I used to save all my credit card statements and bank statements and just go through them to see all my expenses at the end of the year. I wrote checks for all the doctors and usually used the credit card at the pharmacy.

    good luck

  8. Kimba4318

    Kimba4318 New Member

    thanks Karen.. that is great info and very helpful. Makes me feel better about the paperwork. Great idea about the pharmacist, I will ask if they will do that for me. Wonderful!
  9. mezombie

    mezombie Member

    I use one credit card solely for medical expenses. I pay off the full balance at the end of each months. At the end of the year, I just have to add the 12 monthly statements together. Of course, I also add premiums, checks paid to providers who don't take credit cards, and other medical expenses I'm unable to charge. But it helps a lot.

    As to receipts, I keep a file for this purpose and just dump the receipts for the year in there. Sometimes more paperwork ends up in there than necessary, but that's better that than not having the receipt when you need it!
  10. Kimba4318

    Kimba4318 New Member

    Mezombie ... thank you.. that sounds like a good plan.

    Also abcanada LAURA... we must have been typing at the same time, Thank you too! I will call those places and get them to do that for me.

    I feel so much better now,I thought I would just have to try harder for next year, but we have paid so much out this year it was such a shame. Things are looking up then.

    Greatly Appreciated!
  11. Kimba4318

    Kimba4318 New Member

    I'm saying it again...YOU ALL ARE AWESOME...I called the pharmacies I use and they all had no problem whatsoever with giving this to me.

    DO I need to call the doctors to get their co-pay info too? Sorry if you already told me this answer... slow moving day for me.

    Big Hugs
  12. Catseye

    Catseye Member

    Since it's only the expenses you paid that you can take, just make sure you get the doc's office to break down what insurance paid and what you paid from the total amount.

  13. JLH

    JLH New Member

    Speaking of tax time ..... SOME people will have to pay taxes on their SSDI benefits.

    I know that I have to because I also receive a company pension and my husband is still working.

    It all depends on your TOTAL INCOME.

    The instructions are on your tax form from Social Security.

  14. Kimba4318

    Kimba4318 New Member

    Looks like we will have no trouble going over the $11,250... sounded like alot to get over however, my dental bills alone were at $8000.00... so we will be way over that with all of the copays and scripts and other medical bills.

    Another question: YOu said I can write off dental insurance (I think)... MY husband gets 100.00 deducted monthly for dental insurance and for REGULAR HEALTH Insurance he gets about $500 deducted monthly, can we write that off TOO??? May be too good to be true, but thought I would ask.

    Thanks again...
  15. Catseye

    Catseye Member

    Yes, all medical AND dental insurance is deductible. And don't forget, the kid's insurance is, too.


    you're adding it into the medical bills and taking out the 7.5% of AGI, right?[This Message was Edited on 01/17/2007]
  16. Kimba4318

    Kimba4318 New Member

    Okay ... to make sure I know I am doing it right (thank you again.. sorry so much)...

    $150,000.00 gross income / 7.5% would be 11,250

    DOCTOR COPAYS:$1500.00
    TOTAL EXPENSES: 20,100.00 & DEDUCT $11,250.00 = $8850.00 TO BE WRITTEN OFF ON TAXES...


    Really appreciate your time on this. Thanks again Tax Wizard!
  17. Catseye

    Catseye Member

    Now don't forget all your other itemized deductions and you ought to have a whole big bunch of write-offs! The write-offs and being thin are the best things about being ill. I got all new clothes - the clothes I still had that I couldn't fit into I can now fit into again. Glad I didn't give them all away. That's new clothes!

    For the ones who got disability, I'm in the same boat. I got a $54,000 settlement last year. Now I can use it all in last year or I can allocate parts of it to the last 3 years, from when I first became disabled. I have some business loans I paid off that I can play around with but it gets extremely complicated. Make sure you find a good tax person who can play around and figure out the best way for you to handle it and not pay through the nose.

    If you go to a tax place, ask for a senior tax preparer. These can get pretty hairy because the SS rules on what's taxable and how much are ridiculous and virtually impossible for a cfs brain to comprehend. If anyone is feeling particularly spry, here's a rundown of the rules:

    If you can concentrate and you can do a worksheet, you can get an idea of what you will have to pay; but if it's a large settlement, it's better to pay someone to do the return who may save you $1000s.

    good luck!

  18. Kimba4318

    Kimba4318 New Member

    Oh ..., awesome! Your the best!
    Another question....Can we write off Sylvan Learning Center that we take our son to? He has ADHD... he failed the 1st grade bless his heart.

    We paid them over $7000.00 last yeay- yikes! Any write offs on that? Probably not but thought I would ask.

    Wow - sao glad for you with all yor smart write offs :) Gee, can I say I am big now cause of Prednisone and need new clothes?? Hehe

    GUess I need to keep even clothing receipts now???? Very interesting. Your making me (dummy when it comes to this) feel much better now!
  19. Catseye

    Catseye Member

    I think so but I'm not positive because I don't really know what ADHD is. I know what it STANDS for, but I don't know anything about it. As long as a doctor recommended it and you can get a paper from him that says that, I think you can include it as a medical expense.

    Here is the IRS exact rules on special education:

    "You can include in medical expenses fees you pay on a doctor's recommendation for a child's tutoring by a teacher who is specially trained and qualified to work with children who have learning disabilities caused by mental or physical impairments, including nervous system disorders.

    You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. A doctor must recommend that the child attend the school. Overcoming the learning disabilities must be a principal reason for attending the school, and any ordinary education received must be incidental to the special education provided. Special education includes:

    Teaching Braille to a visually impaired person,

    Teaching lip reading to a hearing-impaired person, or

    Giving remedial language training to correct a condition caused by a birth defect.

    You cannot include in medical expenses the cost of sending a problem child to a school where the course of study and the disciplinary methods have a beneficial effect on the child's attitude if the availability of medical care in the school is not a principal reason for sending the student there."

    So from reading this, I would say yes, as long as the doctor recommended it. Obviously, he's not learning braille or lip reading or remedial language, but that's just their examples. Maybe ask someone who works at Sylvan or the parents of another student if they're deducting it if you want more corroboration.

    And remember the 18 cents a mile thing? If you stayed at any hotels to see a doctor, the lodging expense is deductible, too.

    best wishes,

  20. caffey

    caffey New Member

    I am not from the US. I claim anything and everything. I keep all receipts. The most they can do is say no. Nothing ventured nothing gained.