Tax time!

[seasnail]

Hi all,

I had a quick question that maybe someone knows the answer to off the top of their head.

I read that we can claim medical expenses here in the US on our tax form. Is this how much we paid in 2014? Like directly to the hospitals for charges and for prescriptions and to insurance? Basically anything out of pocket? And if it's over 10% of our AGI we can claim it?

I guess I'm not even sure how to find all the information on how much we paid, and if I have it wrong, don't want to take what little time I already have (ha) to do it for nothing. And then of course I'd have to figure out how to actually file (only ever did a 1040 EZ). Ugh.

Anyhow, thanks for any help!

[Nik Colon]

Yes, anything, copay mileage rx, etc. You can call each doc and ask them to send you the dates and amts, call the pharma to get how much you spent, calculate mileage to and from. All of it! I think it's 7.5 not 10. I could be wrong tho

[midlifemom]

Only exception, you can't claim most otc meds, like Tagamet unless you have a script for it. Butt, certain otc like contact lens solution can be claimed. There is a list online of which otc can be claimed.

[lhawk0730]

I'm a tax preparer and accountant. Co-pays, prescriptions, mileage are all medical expenses. Just don't include amounts paid by, or reimbursed by your insurance. Yes, the threshold went up to 10%, unless you (or your spouse) are 65 or older. I don't know how you normally file, but Turbo Tax online is fairly inexpensive and will calculate the allowable deduction (if any). Be aware of the new health insurance mandate for 2014. If you both weren't insured, I suggest paying a professional for filing purposes. Feel free to PM me specific questions. Hope this helped.

[Carolinabluetec]

Fortunately they have not started taxing Cancer (yet).

[Nik Colon]

Fortunately they not started taxing Cancer (yet).

NO SHIT! Damn taxes

[Nik Colon]

I'm a tax preparer and accountant. Co-pays, prescriptions, mileage are all medical expenses. Just don't include amounts paid by, or reimbursed by your insurance. Yes, the threshold went up to 10%, unless you (or your spouse) are 65 or older. I don't know how you normally file, but Turbo Tax online is fairly inexpensive and will calculate the allowable deduction (if any). Be aware of the new health insurance mandate for 2014. If you both weren't insured, I suggest paying a professional for filing purposes. Feel free to PM me specific questions. Hope this helped.

It's up to 10 now! Wtf! Can we say BUTT F'D

[Carolinabluetec]

I'm a tax preparer and accountant. Co-pays, prescriptions, mileage are all medical expenses. Just don't include amounts paid by, or reimbursed by your insurance. Yes, the threshold went up to 10%, unless you (or your spouse) are 65 or older. I don't know how you normally file, but Turbo Tax online is fairly inexpensive and will calculate the allowable deduction (if any). Be aware of the new health insurance mandate for 2014. If you both weren't insured, I suggest paying a professional for filing purposes. Feel free to PM me specific questions. Hope this helped.

It's up to 10 now! Wtf! Can we say BUTT F'D

This was one of those sneaky little things that were part of Obamacare that no one talked about. "You have to pass the bill to find out what is in it."

[weisssoccermom]

Also an accountant here but NOT a tax preparer....don't forget that your dental expenses, eyeglasses (Rx) are also included. If your doctor has Rx'd massage therapy and your insurance doesn't cover it, don't forget those bills as well. Big IF, but IF you paid for your insurance premiums with AFTER tax dollars, then yes, those premiums are also covered. However, almost exclusively, if you receive your insurance from your employer, those premiums are taken out with pre-tax dollars and therefore not eligible. An example of premiums paid that would count towards your medical deduction would be, for example, if you paid COBRA premiums. Don't also forget that if you had to pay for parking (and you a have a receipt) while you were at the doctors/hospital, etc. then those expenses can also be included.
If, for example, you need special shoes because are a diabetic, those expenses are also eligible. Just think beyond the 'typical' idea of medical expenses...remember your dental, your eyeglasses, mileage, parking, etc.

[seasnail]

Wow, thank you all so, so much! This forum is such a wealth of knowledge!!

I'll definitely reach out if I have more questions - seems like I should stick with Turbotax (everything else is really straight forward) so will start calling the hospitals to see if I can get the statements, check it against our income, and go from there. Thank you all again!!

[betsydoglover]

If you have had insurance this year, then most ins companies have websites where you can create an account. You can list all your claims and how much you paid - usually you can download this info into spreadsheet input, but even if you can't, you can get the data without having to call hospitals, docs etc. Makes it a lot easier.

[midlifemom]

And if you've used the same pharmacy, they can produce a list of what you paid them all year.

[weisssoccermom]

My suggestion before you go and try to get receipts, etc. is to first estimate your adjusted gross income because that's what the 10% is based off of. If, for example, you have an AGI or say $75,000, then anything over $7500 would be deductible. Now, if your insurance policy has an out of pocket maximum of, for example, $4,000 you have to ask yourself whether or not all the other categories (mileage, copays ....as these generally don't go towards the out of pocket max....dental, eyeglasses, eye exams, Rx, etc.) would total more than $3500 to reach above that $7500 (remember this is just an example). If there is no way that it would....and not even be close, then don't worry about it. You have to make that call but my point is if the 10% threshold is going to be impossible to meet, don't spend your time running around trying to get all your other financial information.

[Nik Colon]

How I feel about taxes
Liar Liar: http://youtu.be/l-rNIAN5o5M

"Take it up the tail pipe" (so fitting on this forum)

[midlifemom]

I forget the details, (thx chemo), but I know the deductible percent is different for federal and for state, at least it is in NJ. Since we paid Cobra last year (taxable), and it doesn't go towards out of pocket max, we will hit the 10%.