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The Latest in Health Care Tax Deductions -

Due to the health care act of 2010, in the near future it will become increasingly difficult to deduct health care expenses if you itemized on your tax return. With the current rate of medical expenses being deductible by the amount which exceeds 7.5% of your adjusted gross income, this rate will increase in 2013 to the amount that exceeds 10% of AGI and then in 2017 it will increase to 10% for individuals 65 and older.

There are many expenses which the IRS deems qualifying medical expenses when itemizing, these include items such as health insurance, Lasik surgery, medical travel and lodging costs, eye care and some long term care insurance. These are all items which should be tracked throughout the year when itemizing as they could result in increased tax savings.

Another important tax savings for those who are self-employed for the year of 2010 is that for this year only you are able to deduct health insurance premiums paid on your Schedule C before your self-employment tax is calculated. In order to deduct your health insurance before self employment taxes you must deduct your premium amounts before inputting the totals on line 1a, 1b, and 2 on line 3 of your Schedule SE.

If you have any questions regarding these or other tax items feel free to contact us as we can help you navigate through the increasingly complicated tax waters.  Call us at 303-815-1100.

Posted in Your Financial House » Rules and Regulations »

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