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U.S. tax season and medical / itemizing deductions

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Posted 2/10/2016 12:59 AM (GMT 0)
Iam no way qualified to give tax advice, nor shall I answer any questions related to this topic. So we'll just refer to the below info as U.S. tax rumors I heard from a deer tick:

Many here spend a lot of $ on health care. This can save you some money come tax time, not as much as you spent, but it is worth while to some people- at least in federal taxes, state- not so much.

State taxes and refunds obviously vary.

Federal doesn't matter what state you live in. Medical costs fall under itemized deductions. And how much you get back in the form of a refund obviously is calculated with other factors such as: your income, home ownership, and percentage of money spent for healthcare as well as if you have to pay more "in" or not at the end of the year. So obviously what gets deducted is some mythical percentage that is calculated in the tax form that suits your application, and not 100%. Ex: if you spent 8k last year on health and you made only 15K, your deductible percentage should be more than someone who also spent 8k but made 60k last year. I have heard once your med cost is more than 10% of your income, the percent you get back progressively increases from that point.

Dont take this word for word, but as a general rule what can be deducted is what YOU spent on:
-Health insurance premiums
-What you payed out of pocket for : Dr / office / hospital visits, procedures , MRI's, imaging, RX drugs, Chiropractor, Physical Therapy ect

Not covered: non RX supplements, herbs, non-RX pills, (technically its food), massage (technically not medical)

So pretty much real actual medical things are covered.

You need to tally it up (you should have done this anyway), and save receipts just in case your audited by the IRS (yes they do this). Its up to you to have this organized is case IRS wants to see it.

Iam no way qualified to give tax advice, nor shall I answer any questions related to this topic. IRS has a web site and there are professional tax preparers for answers.

Save some $ if you can.
Posted 2/10/2016 1:54 PM (GMT 0)
Good info.....thanks!
Posted 2/10/2016 2:01 PM (GMT 0)
If your LLMD recommends a supplement or an herbal, I would also itemize those expenses just like a script.

To cover yourself simple ask your LLMD to right down all of your supplements on a script slip, and file it with your other medical receipts. Adding these non-Rx costs will help get you over the 10% threshold on itemizing vs taking the standard medical deduction.

Also add your mileage to and from all Dr, Dentist, and lab visits

I'm not an accountant, so proceed with caution.

Post Edited (tickbite666) : 2/10/2016 7:05:15 AM (GMT-7)

Posted 2/10/2016 2:41 PM (GMT 0)
"If your LLMD recommends a supplement or an herbal, I would also itemize those expenses just like a script. "

I was under the impression that only prescription drugs (like antibiotics, from the pharmacy) could be deducted. Herbals prescribed by your doctor cannot.
Posted 2/10/2016 2:49 PM (GMT 0)
If you are taking something recommended by your Dr. it is a medical requirment. I'ld risk that in an audit.
Posted 2/10/2016 3:01 PM (GMT 0)
I've seen many reference to deductions for Dr prescribed OTC medicines. Found this one in a quick search:

"To be deductible as a medical expense, the medicine must usually be prescribed by a doctor. For example, if you make a copay when your doctor prescribes ibuprofen, you can include those costs. However, if you don't have a prescription and get an over-the-counter medication, you can't include that cost. The only medication copay you can deduct without a prescription is insulin."

I know its a stretch, but your not really cheating if it's a medical necessity.
Posted 2/10/2016 3:55 PM (GMT 0)
sarahm620 -

I was under the impression that only prescription drugs (like antibiotics, from the pharmacy) could be deducted. Herbals prescribed by your doctor cannot.""

-i think your right.

What a tax accountant said: "herbals are food". If Drs they say to eat certain foods, you certainly cant deduct them either.
Posted 2/10/2016 5:57 PM (GMT 0)
I agree that herbs can't be used as part of the deductions - I too was told that herbals are considered foods and can not be used for deductions.

And F.Y. I. - there actually has to be quite a bit of medical expense for this to actually work, but it's worth seeing if you qualify. I never have, even when I was using abx because I was able to keep my costs on the low end. So save your receipts for sure, but don't be upset if your tax preparer (or the IRS if you do your own taxes) tells you that there isn't enough for you to claim medical expenses.

We never did claimed anything odd, yet we were audited, so saying that a person won't get audited is not good advice at all. Random audits happen!!
Posted 2/10/2016 6:22 PM (GMT 0)
I was audited once and it is no fun! I came out of it okay because I was telling the truth but it made me lose vacation time at work and was extremely stressful.
Posted 2/10/2016 6:57 PM (GMT 0)
Same here, PeteZa! By the time it was over with, I was sooo exhausted and flustered I just cried!! Think of a mentally compromised Lymie struggling with all those receipt and getting lost as I was trying to provide the right receipt for different reasons!!
Posted 2/10/2016 7:11 PM (GMT 0)
I've taken the risk each year. When the medical deduction didn't start until it reached 7.5% of AGI. I made out OK. Last tax return was the first year Obama upped it to 10% of AGI and I fell just short and did not itemize.

This year's return due to ObamaCare increase in script co-pays, monthly premiums, and a high deductible from a kidney stone op, I managed to get more back than last year. But still in the red with medical bills.

Save your receipts.... and I also keep a running spreadsheet for each Rx co-pay and non-script supplement, probiotics, and Buhner's herbs, along with Dr visits, Lab co-pays, and medical travel.

I receive no government aid, am fully employed, and pay a ton in taxes, so this is my slice of the pie back from what Obama gives away. I'll continue to take the risks until medical coverage gets fixed and Rx prices return to reality.
Posted 2/10/2016 7:49 PM (GMT 0)
tickbite666 I probably would too if in your shoes. I never say never.

My audit was for child care expenses. Good grief, I was a single parent and they wanted me to prove my child care expenses. It was back in 1975 and tips were not included as income so my daily wage was $27 a day but I made $100-$150 a day in tips that I did not have to include. So, my day care set off a red flag of expenses compared to earnings.
Posted 2/11/2016 2:37 PM (GMT 0)
Sorry PeteZa and Traveler. I deleted my post, didn't mean to overstep....
Posted 2/11/2016 2:55 PM (GMT 0)
From IRS Publication 502, Medical and Dental Expenses for use in preparing 2015 returns.

Page 17: Nutritional Supplements

"You can't include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. Otherwise, these items are taken to maintain your ordinary good health, and aren't for medical care."
Posted 2/11/2016 5:09 PM (GMT 0)

Lovemychildren Mom said...
Sorry PeteZa and Traveler. I deleted my post, didn't mean to overstep....

There was no need for that! We all have different experiences with things! It's these differing experiences, when presented in a calm manner, that help us understand that not everyone has the same experiences and what to do when we end up experiencing something different! Please don't feel the need to delete your posts - unless you really need to.
Posted 2/11/2016 5:18 PM (GMT 0)

tickbite666 said...
From IRS Publication 502, Medical and Dental Expenses for use in preparing 2015 returns.

Page 17: Nutritional Supplements

"You can't include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. Otherwise, these items are taken to maintain your ordinary good health, and aren't for medical care."

Now, I'm not telling anyone what to do, only a caution. We need to remember that if we have been diagnosed with chronic Lyme disease (or even 'just' Lyme disease in some states) our diagnosis is hotly contested by government entities. If you have another diagnosis, it might be worth trying to use that instead.

Also, remember that by claiming these things, you may have to give your doctors name should you get audited and that if they are known to be (or found to be) diagnosing chronic Lyme and treating people for it when the gov't of that state says it isn't, you will not only not get your deductions, but will be pulling the doctor into the light as well.

I am NOT telling anyone to not do this - I only believe that we should be fully aware of what we are potentially walking in to.

Take from this post what you find useful and leave the rest.
Posted 2/13/2016 1:07 AM (GMT 0)
LLMD wrote us a prescription recently for an infrared sauna which we just got and started using yesterday. Any opinions about submitting this to our insurance for durable medical equipment or submitting as a medical expense with our tax return?
Posted 3/31/2016 7:01 PM (GMT 0)
Two weeks left to April 15... did anyone else get past the 10% AGI to itemize medical treatment costs?
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