What Medical Expenses Are Tax Deductible?

If you determine that you spent over 10 percent of your adjusted gross income (If you are over 65, the amount is 7.5 percent) on medical expense in 2014, you can potentially claim these expenses as a tax deduction. If you are using TurboTax 2014 to file your taxes, the TurboTax software will help you to figure out your medical expenses as it can potentially be a significant amount.

Deductible medical expenses include those of any dependent, as well as those of you and your spouse.

Expenses for medical costs are not deductible if you get reimbursed for them in some way; for example, your company pays you back for the cost of medical treatment. If your insurance company covers some of the cost and you cover some, the part that you pay is deductible.

If you charged your medical expenses to your credit card, you can deduct those charges, but keep in mind that the year in which you charged them is the criteria.

Using TurboTax will help you to accurately determine the type of medical expenses that qualify for a deduction, and these include doctor and dentist visits, as well as X-rays and other preventative treatments or procedures. Procedures such as teeth whitening, and most types of cosmetic surgery do not qualify for a deduction, unless an accident or disease necessitated the cosmetic surgery.

Prescription drugs and insulin are eligible for medical expenses deductions, as are the costs of visits to a psychiatrist or psychologist, alcohol or drug related treatment or rehabilitation, and the cost of sending a disabled person to a special school. Over the counter supplies and equipment are deductible, but not over the counter drugs and medication.

There are various other deductible medical expenses, and TurboTax 2014 will alert you to these, which include the cost of laser surgery, contact lenses, dentures, crutches and a wheelchair. Lactation expenses, participating in a stop smoking program, treating sexual dysfunction, removing lead paint and the cost of a nursing home are all eligible too.

If you are enrolled voluntarily in Medicare A, the amount paid out of pocket by you is eligible, as well as premiums for Medicare B. TurboTax will inform you that the premiums for an insurance plan sponsored by your employer are not deductible, although the premiums for long term care insurance are eligible.

TurboTax will help you to understand all of these possible deductions – you don’t have to be an expert when using TurboTax 2014!

Consumer Reports Releases Tax Tips

2013 Tax Tips

Consumer Reports is a trusted source in products and services.  They recently released their tips for 2013 taxes, which are about online and computer tax services.  These tips help consumers not get caught up into any questionable tax services and help them save money when filing their 2013 taxes.  Consumer Reports offers the following tips for 2013 taxes:

Consumer Reports
Consumer Reports (Photo credit: Wikipedia)

• Check what the online service has available.  Simple forms like the 1040, 1040EZ, and Schedule A for itemized deductions are provided by most online tax services.  However, if you need a more specific form, schedule, or topic, certain online tax providers may not have it available.  Some tax services do not help consumers who have farm income, adoption expenses, foreign income and various other uncommon tax issues.

• Make sure the service supports your state taxes.  Paying for a tax service that will be unable to file your state taxes is not worth your time or money.  Check for this before paying for a service.

• Research the tax company prior to using their service.  Use a search engine like Google or Bing to see what other consumers are saying.  You can also check other sites like the Ripoff Report or Pissed Consumer.

• Check prices.  Compare the prices of different services.  Many online tax services charge more than just a flat rate fee.  Some charge for paper copies of your taxes or to file an extension.  Others charge more as the tax deadline draws closer.

• If possible, stay away from additional advertisements in the form of pop-ups.  Many online tax preparation services will bombard you with pop-ups trying to convince you to upgrade your service at a cost.  You can avoid these solicitations by using the IRS Free File service.  This program is designed for those with an adjusted gross income of $57,000 or less.  To find out more information on the program, visit the IRS website.

Using these tips provided by Consumer Reports will help you choose the right tax service for your situation.  They will also help you to save money when preparing your taxes and decrease the chances you will pay for something you do not need.  In addition, they can help you avoid potentially shady tax services.