Medical bills can quickly start to add up. Everyone wants to take good care of their health, but a few visits to the doctors, getting your surgery done, or countless other things that have to do with your health can start to get in the way and soon those medical bills are more than you can handle. Countless people are dealing with high medical bills and wondering how they are ever going to get these under control.
There are a few deductions that you will be able to try out in your tax return that could save a lot of money during tax season. While you are not going to be able to get the full amount that you paid back from the medical bills, it can make a big difference at the end of the year. Make sure that you are keeping track of all your receipts for the medical bills and bringing these in to your tax professional to get the most out of your medical deductions.
Medical Supplies
During the year, you may have to pay for some of your own medical supplies. You could pay for breast pumps or hearing aid batteries and other options that you need to keep your health going well. As long as these supplies are not covered by your insurance, you will be able to claim them on your tax return. Make sure to keep good records of these things to ensure that you are getting the most out of your deduction.
There are also a few home improvements that you can do that will provide you with this kind of deduction. For example, if you need to add in a ramp to your home or other items to make it more handicapped accessible for someone who lives in the home, you may be able to deduct some of these costs. Or you can sometimes deduct the cost of replacing the siding in your home if someone became sick from mold in the home.
Before claiming any of the medical deductions, make sure to come and talk to your local tax professional. They will be able to walk you through each of the deductions that are available and can tell you all the paperwork that is needed to prove you qualify. Make sure to find a good tax professional near you before getting started to make this process easier.
Medical Bills
Medical bills can pile up pretty quickly and can leave you wondering which way to turn. And when quite a bit of your income is eaten up by these bills, you may be stuck having to decide which bills to pay and which ones are going to need to wait for a bit longer. Now with your tax returns, you may be able to deduct some of the expenses that you incur through the year, as long as certain requirements are met.
In most cases, the amount of the medical bills will need to reach more than ten percent of your gross adjusted income. And you will be able to claim just the amount that is above the ten percent. This means that if your medical bills come up to twelve percent of your income, you will be able to claim that two percent on your tax return. Make sure to talk with your tax professional ahead of time to ensure that you are claiming the amount that you are allowed and getting the most out of this deduction.
Things Not to Claim
You are not able to claim everything that you have for a medical bill through the year, although this would be a nice way to save more money. First, if you don’t have medical bills that are above 10 percent of your gross annual income, make sure that you are not claiming them at all. The IRS does not allow you to claim below this certain income level amount, no matter how tired you may be of the bill or how much it may hinder your ability to pay any of your other bills.
In addition, you are not able to deduct anything that is paid off for you. For example, if you get a medical bill for $5000 and your medical insurance pays $4500 of it, you will not be able to claim the full $5000 on your tax return. At most, you can claim the $500, but this is not likely to be ten percent of your income so you won’t really get the deduction. Anything that someone else pays for, whether it is federal assistance, your health insurance, or another person, can’t be included in this deduction.
Keep in mind that you are not allowed to deduct the health insurance premiums that you incur. While these may add to your medical bill amount and could drive you up over the 10 percent rule if you added them in, you are not able to include these into the final amount. You have to pay these out of pocket without the deduction.
Medical bills can get expensive through the year. You may find that assistance is needed in the end to ensure that you are getting them taken care of as quickly as possible. If you need help getting all of the deductions that you qualify for, either medical deductions or something else, make sure to contact our offices to find the right tax professional for your needs.
