Deducting Medical Expenses

When you are doing your taxes, there is a lot that you need to keep track of. Many Americans work hard to try and figure out their taxes at the end of the year, but then it is so confusing that this can be almost impossible. Figuring out which forms to wait for and what numbers to put in each spot is not as easy as it may seem. Plus worrying about that big tax bill at the end of the form and how you are going to pay it off is enough to give anyone a headache.

But your tax bill does not have to be out of control this year, especially if you have made the right choices during tax preparation time. The right use of deductions can make all of the difference and helps to save you a lot of money when it comes time to pay the IRS. One deduction that you should check out is the medical expense deductions. While not all of your medical expenses can be deducted with this option, it can help to save you money at the end of the year. If you think you should get the medical expense deduction, consider contacting the tax professionals in your area right away to get started.

Medical Costs

Spending time in the doctor is not something that anyone wants to do. They would rather be outside, having fun, playing with their children, going to work, and so much else. But when you spend a lot of time in the doctors’ office, getting tests and other things done, you will start to notice that the bills get a little bit high.

If your doctor bills are starting to get a bit high and you are spending a good portion of your income on these bills, you may be able to get a deduction for all these expenses. For most people, if you spend over 10 percent of your adjusted gross income on the medical bills, you will be able to deduct the amount above the 10 percent that you spent. For example, if you spend 14 percent of your income on medical expenses, you will be able to deduct that 2 percent on your tax return.

While doing this process, remember that you are only able to count the medical expenses that are not covered by your insurance. If you have a $10,000 medical bill but you only pay $500 of it, you will only be able to claim that $500 and not the rest of it. You will not be able to deduct any of your insurance premium in the process or any fees that are associated with having the insurance. You can just deduct the amount that you pay out of pocket for your medical expenses and then you can only do this if your amount is over 10 percent of your adjusted gross income.

Figuring out all of these numbers can be a challenge. Most people are not sure what their adjusted gross income will be nor how much they will have in medical bills by the time they are done. Don’t try to figure this out on your own. Keep good receipts of the medical bills you have paid and bring these, as well as your other paperwork, into your tax professional as soon as possible. This will help you to get all the information in the right spot without all the hassle along the way.

Other Medical  Expenses

There are some other medical expenses that you will be able to deduct when it comes time to do your tax return at the end of the year. You will have to check with your tax professional before claiming these for your own, but if you are smart about your taxes and keep good records, you will find that it is easy to get some extra deductions at tax time.

One thing that you can consider deducting is the cost of batteries for your hearing aids. If you pay these out of pocket on your own and don’t have insurance helping, you can keep the receipts and deduct this amount at the end of the year. In addition, you can deduct the price of breast pumps and supplies, as long as insurance isn’t footing some or all of the price for you, when it comes to your tax return. Some other necessary medical supplies could be deductible as well, you just need to talk to your tax professional to make sure ahead of time.

Make sure that you have the right records for the supplies that you are deducting so you don’t deduct something that is not needed. This can cause some challenges, but without the receipts, your tax professional is not going to let you get the deduction that you would like. Be careful with your record keeping or you could end up in trouble with the IRS.

Hiring a tax professional is one of the best ways to ensure that you are getting the best results during tax time. Not only are they able to help you get the right medical deductions to save money, but they can look for some of the other deductions and credits that are going to help you save a ton during this tax season. Contact a tax professional in your area who can help you get started as soon as possible.