Tax Deduction Tip: Medical Expenses

Going through tax season, I figured I would pass along something I learned a few years back and it seems to be helping on our itemized taxes. Did you know the premiums you pay out of your paycheck, plus co-pays, prescriptions, mileage is all tax deductible? You must meet the threshold of 7.5% of gross income, anything over that is now a deduction for you. These days for a family, the premiums alone can mostly cover this. We pull a statement off the company’s website to get “our share” of health insurance. Or you can just take your pay stub and times it by 26 if you are paid every other week or 52 if you are paid weekly. Keep track of all the co-pays, prescriptions and other medicines OTC. On top of those expenses, you can jot down the mileage associated with those trips to the Dr./Pharmacy/Store. For 2011 it was .19 each mile for the first half of year, the second 1/2 of the year it was .235. That mileage can really add up. We have also been taking my husband’s Grandma to the Dr. and picking up perscriptions, which can also be claimed. I keep a spreadsheet that has the date, where, what, amount and mileage columns. If you want a copy message me and I can send it to you.

Let us know if you have any tax deductions that you use that others may not be using.



~ by debt2dreams on February 23, 2012.

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