Medical expenses deduction 20201/29/2024 ![]() But claiming an incorrect deduction on your tax return could lead to an IRS audit, and that's probably not something you want. If you spent a lot of money on healthcare bills last year, then it absolutely pays to see if you're entitled to claim a medical expense deduction. ![]() You can generally claim expenses like mileage, tolls, and applicable parking fees as part of your total medical expense deduction. Say you needed treatment at a facility 40 miles away from your house multiple times last year. You may also, in some cases, be eligible to claim transportation expenses as part of the medical expense deduction. You can claim expenses that extend to dental care if you had a lot of bills to cover out of pocket. There tends to be confusion about the medical expense deduction because you might assume it only applies to doctor visits. So in this example, with $8,000 in medical spending, you're looking at a deduction worth $2,750. You can only claim expenses above that threshold. Since 7.5% of $70,000 is $5,250, it means your first $5,250 in medical expenses cannot be deducted. You can only claim amounts beyond 7.5% of your income. However, you don't get to claim an $8,000 deduction. That's over 11% of your income, so you should be good to claim a deduction if you're itemizing on your return. Now, let's say that instead of spending $5,000 on medical bills in 2022, you spent $8,000. So in this situation, you get no deduction. But if your adjusted gross income last year was $70,000, $5,000 is only about 7.1% of that. Clearly, that means your healthcare costs ate up a sizable chunk of your income. Let's say your adjusted gross income for 2022 was $70,000, and you spent $5,000 on medical bills last year. And that's where things get a little complicated. The rule for claiming a medical expense deduction is that you can only write off healthcare costs that exceed 7.5% of your adjusted gross income. In order to claim a medical expense deduction on your taxes, you must be itemizing on your return. Tax filers can go one of two routes when filing their returns: They can take the standard deduction, or they can itemize their personal deductions to see if that number is higher. The answer is that it depends on how you do your taxes and how much your bills amounted to relative to your income. If you spent a lot of money on medical expenses last year, you may be wondering whether it will serve as a tax break for you. credit card debt is none other than medical bills. Medical bills are a major expense a lot of people have to bear. While it doesn’t influence our opinions of products, we may receive compensation from partners whose offers appear here. Watch Video: Tech to help you find 2023 tax deductions
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