Deductible Medical Expenses
This year’s tax deadline of April 15 is edging ever closer, which means making sure your tax return is near completion should be a major priority in the coming weeks.
Every year, around $1.2 trillion are claimed back in rebates by U.S. citizens, according to the website TurboTax, so knowing the ins and outs of the tax system can help you make the most of your financial situation.
One element of the rebate system that shouldn’t be overlooked for those on a low income is deductible medical expenses. Open to anyone who spends over 10% of their gross annual income on medical expenses, the system allows those who provide for their own care or the care of others to claim back any sales tax paid on medical items, once they go over the 10% starting point.
Although the name ‘medical expenses’ may make you think the number of things you can claim may be limited, there are actually a wide variety of items to choose from that promote the general idea of giving citizens a better quality of life. To give you a better understanding of the topic, we’ve created a list of just a few things you can claim against 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
If you would like to find out more information, it is best to visit the Internal Revenue Service’s website or speak to your local certified public accountant. Both will give you a better idea as to what can be claimed that relates to you and what steps to take moving forward.
Don’t Overpay if You Don’t Need to!
Figures from the U.S. Government Accountability Scheme show some 2.2 million citizens under claim on their tax return each year, largely due to the fact they choose a standard deduction rate, rather than itemized billing.
By choosing the former every year for your tax return out of ease, you could potentially be missing out on hundreds of thousands of dollars over the course of a working lifetime.
Many also fail to realize that both nursing and home care in Jenkintown can be claimed under the medical expenses scheme, meaning the overall cost of care can be substantially reduced.
Filling in your tax return isn’t a thing that is going to go away anytime soon. Learning about how the system works and what sort of tax cuts you could be eligible to claim for can make the world of difference to your financial situation over a long period of time.
If you haven’t got the time or you’re just not quite confident enough to fill in an itemized return by yourself, get in touch with a local tax advisor. Their service is often very quick, and they generally only charge a small percentage fee of any money you earn back as part of your return.