Deductible Medical Expenses
While that thought can fill some with dread, for others, it can be an opportunity to claim back some money that is rightfully theirs.
One such example of this is deductible medical expenses. Designed for those struggling with the spiraling costs of their own care or the care of a loved one, the scheme is available to those who spend over 10% of their gross annual income on medical expenses. Once a person starts spending over that 10% starting point, they become eligible to receive tax back on any medical related item bought during the rest of the tax year from there on in.
In Indiana, for example, sales tax currently stands at 7%. Therefore, if you qualified for the scheme, you would be eligible for a $7 rebate on a pair of $100 reading glasses.
The number of things you can claim for is surprisingly vast, with most items focused on improving a person’s quality of life as opposed to being restricted to medicine. Some examples include:
- 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
Knowing where to start in terms of claiming back medical expenses can be tricky, so we would recommend visiting the Internal Revenue Service’s website and then speaking to a certified public accountant.
Don’t Overpay if You Don’t Need to!
Many fail to realize the cost of in-home care in Michiana can be claimed under the deductible medical expenses scheme. As you can imagine, over the course of a number of years, this could represent a substantial figure in terms of savings.
The U.S. Accountability Scheme estimates 2.2 million residents receive a smaller tax rebate than what they’re actually eligible for due to them choosing a standard deduction rate rather than itemized billing. If you worry about the latter taking up too much of your time, speak to an accountant. In nearly all situations, they’ll be able to guarantee you a larger return, even when their fee is taken into consideration.