Claiming Medical Expenses

[Macaela25]

For the first time, and hopefully the last, DH and I will qualify for major medical. We are $2-3k over the 7.5% AGI limit. My question is, does anyone know how the IRS calculates this? We'll get a refund this year (we usually try not to). A client tried to convince me that IRS refunds whatever amount you are over the 7.5% dollar for dollar, which I seriously doubt. I don't know of ANY deduction that is refunded dollar for dollar!

[crecian]

My dh and I get this deduction just about every year since he has been very ill for years and I do our own taxes, I'm not certain how much it is but it is calculated on the long form schedule A (I believe), the same place your mortgage interest is calculated, so whatever the deduction is for mortgage interest is the same for anything medical over 7.5% and I don't think it is dollar for dollar.

[loladooder99]

I will possibly be calling the irs to see if copays are deductible. But does anyone know if co pays on office visits are deductible. I have insurance through my husbands job.

[skimo]

Co-pays are deductible, and last year, the mileage to and from the doctor's office were also deductible.

[motherofmolly]

all un reimbursed medical expenses are deductible...this includes co-pays and rx out of pocket...

if you look at schedule a (itemized deduction form) under the first 4 lines is medical and dental expenses...

adjust gross income (what you made) x 7.5% = X
total out of pocket medical/dental - X = the amount you can claim as a deduction...

yes this is a deduction that you include with your mortgage interest, donations, and real estate taxes...there are a few other things on the form but these are the ones used alot....

remember in order to take the itemized deduction the total itemized must be greater than your standard (single, married, etc) deduction.... $5450 is the standard for single this year $10,900 is the married deduction

hope this helps...if not pm me --i probably can help

[Macaela25]

Premiums that you pay for are also deductible, whether for dental, vision, or medical. So are prescriptions, glasses, contacts...I think I've got the list memorized!

[motherofmolly]

Originally Posted by Macaela25 Premiums that you pay for are also deductible, whether for dental, vision, or medical. So are prescriptions, glasses, contacts...I think I've got the list memorized!

yes you are correct!! i always forget these ....i have never had enough to actualy use the deduction even after 2 baby's and each time having to see a ob specialists for the diabetes...

[crecian]

premiums are deductible if they are after tax dollars, mine are before taxes at my job. So, just keep that in mind, you don't want the feds after you.

[Macaela25]

Originally Posted by crecian premiums are deductible if they are after tax dollars, mine are before taxes at my job. So, just keep that in mind, you don't want the feds after you.

I'm not sure which is the case with us. The IRS website is confusing on that point. It says:

Employer-Sponsored Health Insurance Plan
Do not include in your medical and dental expenses any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included in box 1 of your Form W-2, Wage and Tax Statement. Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included in box 1 of your Form W-2.
Example.
You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Because you are an employee whose insurance premiums are paid with money that is never included in your gross income, you cannot deduct the premiums paid with that money.


I assume our premiums are deducted after taxes - DH is paid hourly. How would I find out? Contacting HR is not really feasible; DH works for a huge corporation where it's impossible to talk to a real person.

[crecian]

my pay stub shows deductions that are made prior to being taxed, then the deductions that are taxed, my health, dental and vision is pretax dollars and my disability, death and dismemberment are post tax dollars...and I believe the website info you quoted is trying to say that in box 1 on your w2 is post taxed benefits so you will include this if it is in box 1.
hth and didn't just muddy the water some more:hectic1: