Well it's a New Year and one of the things that comes with it is preparing to do your taxes. I spent a couple of years preparing taxes when my son was a baby so here's some advice. If you itemize your taxes take a good luck at your medical expenses. In order to claim medical expenses they need to exceed more than 7.5% of your adjusted gross income. For example, if you made $40,000 dollars you would need to have more than $3,000 dollars in expenses. Now before you leave thinking that's impossible read on.
- Grab your calendar before you recycle it and look through it for appointments in 2008.
- Gather you records, receipts, EOB's and more. If you don't have the records call your doctor, pharmacist, chiropractor and ask. They're usually more than happy to give you a printed report.
- Check your mileage. Due to the high gas prices this year the mileage reimbursement rates have been changed. Mileage between January 1, 2008 and June 30, 2008 is deductible at 19 cents per mile. From July 1, 2008 through the end of the year is at 27 cents per mile. Now add this up, every trip that involved medical expenses including picking up a prescription is deductible, round trip and include tolls and parking.
- Make sure you use all of your deductions. Did you know you could deduct your chiropractor as well as accupuncture? Fertility enhancement? How about registration and transportation to a medical conference for your illness? Don't forget your therapist!
- Sometimes we forget the basics. You can deduct insurance premiums for medical care, dental care, vision care and COBRA.
- Did you buy a wig? Deductible. Join Weight Watchers? Deductible. But remember, only if it is health related.
- Did you have to travel to receive your treatment? Airfare, trainfare even related lodging and meals can be deducted as related to medical care.
Now let me say this. When I was doing taxes people would get frustrated if they could not use the deduction. My response to them was always that they had a good year. If you're reading this blog then you likely have higher medical expenses than the average person and you should definitely investigate it.
- Grab your calendar before you recycle it and look through it for appointments in 2008.
- Gather you records, receipts, EOB's and more. If you don't have the records call your doctor, pharmacist, chiropractor and ask. They're usually more than happy to give you a printed report.
- Check your mileage. Due to the high gas prices this year the mileage reimbursement rates have been changed. Mileage between January 1, 2008 and June 30, 2008 is deductible at 19 cents per mile. From July 1, 2008 through the end of the year is at 27 cents per mile. Now add this up, every trip that involved medical expenses including picking up a prescription is deductible, round trip and include tolls and parking.
- Make sure you use all of your deductions. Did you know you could deduct your chiropractor as well as accupuncture? Fertility enhancement? How about registration and transportation to a medical conference for your illness? Don't forget your therapist!
- Sometimes we forget the basics. You can deduct insurance premiums for medical care, dental care, vision care and COBRA.
- Did you buy a wig? Deductible. Join Weight Watchers? Deductible. But remember, only if it is health related.
- Did you have to travel to receive your treatment? Airfare, trainfare even related lodging and meals can be deducted as related to medical care.
Now let me say this. When I was doing taxes people would get frustrated if they could not use the deduction. My response to them was always that they had a good year. If you're reading this blog then you likely have higher medical expenses than the average person and you should definitely investigate it.