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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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tax question - medical deductions
for medical deductions, can you only apply them to the year that the service was charged or the year you actually paid?
We have bills that I'm holding onto from 2011, b/c my union will negotiate medical bills, so I'm waiting for all services to be provided (should be by the end of the month)
Do they still go on my 2011 taxes? even if I pay them in 2012? I would rather hold them all for 2012.
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Posted 1/8/12 10:53 AM  |
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BargainMama
LIF Adult
Member since 5/09 15657 total posts
Name:
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Re: tax question - medical deductions
It's based on when you actually pay them.
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| Posted 1/8/12 11:08 AM |
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Re: tax question - medical deductions
It is definitely based on when you pay them. If you havent actually paid them yet then they will go on your 2012 tax return. If you have any other questions feel free to contact me.
John Wangner
Ives & Sultan, LLP
[email protected]
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| Posted 1/8/12 11:13 AM |
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MarathonKnitter
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Member since 2/07 17374 total posts
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Re: tax question - medical deductions
don't forget about the 7.5% limitation... or whatever it's called. lol
the medical bills have to be more than that amount to even be considered for your schedule a.
depending on the amount, you might also consider a cafeteria plan, if your job allows it and if open enrollment is still available to you.
i would suggest talking to a professional who you feel comfortable sharing your numbers with... because there is are specific windows where each option would be most beneficial to you
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| Posted 1/8/12 11:31 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: tax question - medical deductions
Posted by libby2595
don't forget about the 7.5% limitation... or whatever it's called. lol
this is why i want to include them in 2012...to have a better chance at meeting that.
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| Posted 1/8/12 11:34 AM |
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MarathonKnitter
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Member since 2/07 17374 total posts
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Re: tax question - medical deductions
Posted by Erica
Posted by libby2595
don't forget about the 7.5% limitation... or whatever it's called. lol
this is why i want to include them in 2012...to have a better chance at meeting that.
cool. sounds like you already have some understanding of how the numbers work. best of luck in being able to make the most of the deduction
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| Posted 1/8/12 11:36 AM |
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2boys4me
He's coming soon!
Member since 4/10 4260 total posts
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Re: tax question - medical deductions
Can you write off the amount that you pay for health insurance itself? Like not just the bills but just to have the insurance, we pay $250 a month for DH and I, that's what his company doesn't pay then $9 a month for CHP for DS plus all the co-pays and stuff that our insurance doesn't cover.
Can we deduction that $250 a month?
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| Posted 1/8/12 11:52 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
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Re: tax question - medical deductions
Posted by 2boys4me
Can you write off the amount that you pay for health insurance itself? Like not just the bills but just to have the insurance, we pay $250 a month for DH and I, that's what his company doesn't pay then $9 a month for CHP for DS plus all the co-pays and stuff that our insurance doesn't cover.
Can we deduction that $250 a month?
yes and no.
yes, that amount is tax deductible.
i can bet that the $250/month is deducted from your pay before your taxable income is calculated, that means that it's already tax free. any amount that you pay with taxable income can be deducted. the kicker is the 7.5% threshold you must meet and if you're itemizing your return.
so... if your tax return includes a schedule a (this is where most americans write off their mortgage interest), then you're a step closer to deducting medical expenses on your income tax return. then, you must have your medical expenses be AT LEAST 7.5% of your AGI (adjusted gross income).
now, if that doesn't meet your situation, you can always participate in your employers cafeteria plan, where you can have money taken from your paycheck TAX FREE and it gets put aside. then, when you have medical expenses, you can have that money reimbursed... making those medical expenses tax free. you can also have child care expenses paid for this way
even this would only come into play if you actually have a tax liability, after deductions.
i STRONGLY advise speaking to an accountant/tax professional you trust to explain which option makes most sense for you and your family. they would have to look at your numbers to best give advise.
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| Posted 1/8/12 12:25 PM |
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Re: tax question - medical deductions
You are not allowed to include the $250/month that you pay for the insurance on your schedule A (itemized deductions)
The $250 comes out of your pay before taxes and is NOT included in your taxable gross pay.
However, you can deduct all of the co-pays and all other medical expenses that are not elective or cosmetic.
Also, it is true that you must have MORE than 7.5% of your AGI (adjusted gross income) in medical/dental expenses and only the portion OVER the 7.5% is deductable. For example if your AGI is 100,000 (7.5% of that being $7,500), and you had med/dental expenses of $8,000, only $500 of it would be deductable.
Hope that answers some of your questions, and you can feel free to email me if you need/want more tax advice or someone to help you prepare your tax return.
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| Posted 1/9/12 4:41 PM |
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