Deductible Medical Expenses
With March in full swing, next month’s tax deadline is edging closer with each passing day. It’s estimated that, every year, over a trillion dollars’ worth of rebates are claimed by U.S. citizens, much of which is made up of deductible medical expenses.
Any rebate on the cost of caring for yourself or your loved one is designed to help keep medical care affordable for people from all backgrounds. Anyone who spends over 10% of their gross annual income on medical related items may be eligible to claim for a sales tax refund under the scheme.
Currently, in California, sales tax can vary from 7.25% to 9.25%, although it’s important to note that prescription drugs are currently exempt from tax and would, therefore, not be a medical item you could claim a rebate on. To help give you a better idea as to what things you could claim, we’ve created a quick list of eligible items below:
- Artificial limbs
- Hearing aids
- Acupuncture treatment
- Cost of transportation to get to a medical appointment
- Any renovations to make a property more senior friendly
- Many more
Despite being named ‘medical expenses’, the item you’re claiming doesn’t have to relate specificallyto medicine. As long as it helps improve a person’s quality of life, it could be eligible to claim against.
To find out more information about the scheme, it’s best to visit your local certified public accountant or visit the Internal Revenue Service’s website. Both will be able to tell you exactly what you can claim, while the former will also be able to provide you with a rough estimate as to how much you could actually claim.
Don’t Overpay if You Don’t Need to!
Last year, 2.2 million citizens received a smaller rebate than what they were actually due, according to data from the U.S. Government Accountability Scheme. The reason? They chose a standard deduction rate on their return, rather than taking the time to fill out an itemized return.
While the former does take more time and leave you at risk of making an error, it could potentially save you tens of thousands of dollars over the course of a working lifetime. That money could pay for your own home care in Manhattan Beach in the future or go towards the care of your loved one now.
The tax system is undoubtedly tricky to get your head around – that’s why accountants can get away with charging us so much money. If, however, you take the time to learn the basics, it can help to give you a much surer footing to make decisions about which route to take with your next return.