Hello all. On my med receipts there is a line at the bottom that says to keep it for tax purposes. How would I classify it ? Thanks.
[quote]Brody wrote:
Hello all. On my med receipts there is a line at the bottom that says to keep it for tax purposes. How would I classify it ? Thanks.[/quote]
It would be a medical expense if you itemized your deductions.
once you go over a certain amount i can’t remember off the top of my head, it becomes a deduction just like anything else, you should not have to list every detail its just the total amount of medical expense that matters.
If you have a HSA account, you can have it and all meds paid out of tax free income.
[quote]morepain wrote:
once you go over a certain amount i can’t remember off the top of my head, it becomes a deduction just like anything else, you should not have to list every detail its just the total amount of medical expense that matters. [/quote]
The medical deductions are a percentage of your adjusted gross income. I believe it is deductable over 18%.
If you are a professional body builder, meaning if a significant portion of your income is derived from body building, it would be a business expense. The so would gym dues, training clothes, competition fees and jock straps.
Pardon my ignorance. What is a HSA acct? Thanks to all the replies.
[quote]Brody wrote:
Pardon my ignorance. What is a HSA acct? Thanks to all the replies.[/quote]
In the USA:
For those with qualified “high deductibility health plans”, you set up a heath saving account. You put money into it, and then submit your bills to the plan and they give you money back. If you are a business owner, you then claim the deduction at tax time. In other situations, I think, the money can go direct to the plan tax free deducted from your pay check. I have started this, but have not gone past one tax cycle yet.
High deductibility plans have inexpensive premiums and you save on that and are betting that you will have very few high cost events. So you are then have an other good reason to keep yourself well. As an example, my wife and I are paying around $350/month total for both of use and we have to eat the first $2000/year in medical costs. With that plan, we can do the HSA and pay our out of pocked med costs with tax free income.