Deductible Medical Expenses
As the tax deadline slowly edges closer, we thought it was time to remind you of the importance of filling in an itemized return if you provide your own care or the care of someone else, here in Bethlehem.
The reason is simple: You could be eligible for a rebate for the cost of the sales tax you paid on certain medical related items in the last 12 months. To be eligible, you have to have spent over 10% of your gross annual income on medical costs. Only items brought over the 10% mark qualify to be claimed against.
Around $1.25 trillion is claimed by residents in the United States, so if you haven’t already done so, there’s never been a better time to start.
To give you some idea of the wide range of items and activities that can be claimed against, we’ve created a short list 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
As you can probably see, even though the rebate is classified as ‘medical expenses’, there are a number of things related to a person’s general quality of life that are also eligible under the scheme.
If you’re unsure of the size of the refund you could be due, it’s best to speak to your local certified public accountant. Not only will they be able to give you a better idea as to the number of items you could potentially claim, but also, they will also be able to fill out the return on your behalf.
Don’t Overpay if You Don’t Need to!
Each year, 2.2 million citizens miss out on a larger rebate because of choosing a standard deduction tax, rather than itemized billing, according to the U.S. Government Accountability Office. To put that into context, over the course of a lifetime, that choice could equate to a person losing out on a refund that is the equivalent to the cost of a home.
Many fail to realize that nursing or in-home care in Bethlehem also counts under the scheme, so you could dramatically cut the cost of any care for yourself or a loved one substantially over a prolonged period of time.
Learning the basics of the tax system will help you and your family claim the money you’re legally owed by the government. Tens of millions of families from all over the country are already benefitting from understanding how the system can work for them. So, ask yourself, why shouldn’t you?
If you’re still not confident enough or don’t have the time to fill in an itemized return by yourself this year, you could still save yourself huge sums of money by getting in touch with a qualified accountant.