Keep These Tips in Mind to Get a Healthier Tax Refund This Year

Unfortunately, the IRS notes in Publication 502, that medical expense deductions “do not include…..vitamins or a vacation." So, what can be deducted?

  • Co-pays and prescriptions
  • Medical mileage and medical travel expenses
  • Eyeglasses, chiropractic services and acupuncture
  • Home renovations, therapeutic swimming, whirlpool baths, and more.

A professional tax consultant can make sure you are not overlooking anything that may help you hurdle the new 10 percent allowance for medical deductions beginning in 2017.  For instance, if a child is claimed as a dependent by one parent, the other parent can still deduct any medical fees associated with the same child.

 

The Patient Protection and Affordable Care Act (Obamacare) is still in effect through 2017. If you did not have health coverage in 2016 and don't qualify for a health coverage exemption, the penalty fee is 2.5% of your household income or $695 per adult ($347.50 per child), whichever is higher. And, the same will hold true for 2017.

 

You might also consider shifting out-of-pocket medical expenses into flexible spending accounts, health savings accounts or health reimbursement arrangements so that you can deduct the full amount of your medical expenses. Using a flexible spending account through an employer, or through a health savings account, you can set aside pre-tax dollars from your wages, and then use those pre-tax dollars to pay for medical and dental expenses.

If you need assistance strategizing your 2017 tax planning and financial goals, barton CPA is a reputable Coachella Valley firm and offers a complimentary consultation.

barton CPA

Phone (760) 969-6499

© 2017 Barton CPA & Associates. All Rights Reserved.