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Deducting Medical Expenses For Tax

Discussion in 'General Discussions - USA & Canada' started by jillcastle, Jan 3, 2017.

  1. jillcastle

    jillcastle Gold IL'ite

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    Hi all,

    I know it is realy early to start talking about tax filing. But I have already started sorting out all documents needed to file tax. Last year I used the standard deduction, but this time thanks to my infertility treatment, I have huge medical expenses and I am planning to do the itemized deductions for the same. Since I am pretty new to this stuff, can someone who has already done this tell me what all documents would I need and how will the process differ from a standard deduction? I have all the invoices and payment receipts for the different doctor vistis, and medications. I am also paying my insurance premium from my take home pay (my employee does not contribute), so I am also planning to claim it. So what documents would I need for it? Will I be sending these documents when I file my tax?

    Thanks in advance!
     
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  2. jillcastle

    jillcastle Gold IL'ite

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  3. sokanasanah

    sokanasanah IL Hall of Fame

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    Duplicate.
     
    Last edited: Jan 4, 2017
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  4. sokanasanah

    sokanasanah IL Hall of Fame

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    You might try an automated tax filing system like TaxACT online (there are others). It will let you prepare your taxes and walk you through the process step by step. You will only be charged ($30 or so) if you decide to actually file your taxes from it. Until that point it's free. That might give you some idea. Since you still have 3 months to file, this may be a good experiment.
    Good Luck! Enjoy adult-ing!:lol:
     
  5. jillcastle

    jillcastle Gold IL'ite

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    Thank you for the reply. I checked the link, seems useful. I have an OCD about budget and expenses. I will be driving my DH crazy. Will pass on the wishes to my DH, he needs it more. :D
     
  6. MalStrom

    MalStrom IL Hall of Fame

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    I always use Turbotax to file online.
    I did not send in medical receipts with my returns, but I had them all handy in a folder in case the IRS wanted to check. You should not need to send them unless there is an audit. Look up the tax schedules for what you can claim, since the amount keeps changing every year. You just calculate the total of all your medical expenses: co-pays, medications, all fees. You can also calculate the expenses for travel to your doctors' appointments using the mileage calculator provided by the IRS.
    The program will walk you through the process of filing. You can also go to a tax preparer but some of them may not be very knowledgeable about medical expenses.
     
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  7. jillcastle

    jillcastle Gold IL'ite

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    @MalStrom Thanks for the reply. So if I dont send the medical receipts along with my returns how will they verify if it is the correct amount? Does it mean there will be an audit mandatory if I claim medical expenses?
     
  8. MalStrom

    MalStrom IL Hall of Fame

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    They may audit you if they feel the claims are excessive, or they may just send you a letter later asking for verification. It does not mean a mandatory audit. But check with a tax professional if you have a very sizable deduction. Mine was not that big since I had some insurance coverage.
     
  9. jillcastle

    jillcastle Gold IL'ite

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    I dont have any coverage, so my deduction is quite big. But I do have receipt for every dollar spent. I was not sure if it is worth going to a tax professional. Anyway thanks for the reply, it was very helpful.
     
  10. jillcastle

    jillcastle Gold IL'ite

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    I have one more question. My uncle took a medical loan (since I am relatively new here could not get approved with my credit history) and I have been paying it. Can I claim this loan too as medical expenses?
     

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