Wednesday, August 6, 2008

A little help from Uncle Sam

I did a little searching after my last post. All medical expenses that exceed 7.5% of your adjusted gross income can be written off on your taxes. This includes all dental procedures, braces, your portion of surgical expenses, and even mileage to and from doctor's appointments. Here is the link to the IRS website section regarding these deductions. Just thought it might be a good piece of info for you guys:
http://www.irs.gov/pub/irs-pdf/p502.pdf
It looks like this will be my first year to actually use an accountant!

4 comments:

Kelly said...

Hey Rachel! I'll be your accountant. :) Anyway, your best bet is to put aside money for Flex Spending if your company offers that. (I know it may be too late for you now, but I wanted to post this to help others too). You choose the amount (in December)that you want taken out of your paycheck for the next whole year (You have to sort of estimate your medical expenses a year before - b/c if you do not use it, you lose it) and you basically do not get taxed on that income. In other words, I knew I was getting braces in Jan 08, so in Dec 07 I said take out $4,500 for medical expenses. That $4,500 of my income is not taxed and I don't have to worry about spending over 7.5% of what I make in medical expenses (which most people never reach). I hope that helped!!

Michelle said...

Oh, I have that flex spending, so I guess I won't have to worry about this. But just to be on the safe side, I'll have a close look at that pdf.

Thanks for being so darn helpful - you're a gem!

:0)
M

LonghornChic said...

Rachel Anne! Your favorite sister (AKA the queen of medical tax write offs) has been doing this for years! All you have to do is choose the regular 1030 in Turbo Tax rather than the 1030EZ -- it asks you all the correct questions without needing/paying for an accountant. Just call me, man.

UncleBruce said...

I really need to call Clay...

Seems like you're doing OK. You never call, so I don't know...

Cheese had his wisdom teeth out today. Maybe we need to have him start a blog - or check out your blender blog.