SELF-PAY - TAX Info all Self-Pay Patients should know

TheGh0st · March 14, 2006

US Residents can deduct any medical expenses over 7.5% of their income. In addition to the surgery costs these expenses include any other doctors office, dentist or pharmacy co-pays. I'm not sure about Vision expenses I would think they are included. I don't think over the counter meds or insurance premiums paid through your paycheck at work are included but they would be worth looking into in case I'm wrong.

Example:

Surgery Costs: 16,500

Doctor Co-Pays: 300

Dentist Fees: 200

Pharmacy Costs: 500

Total Medical Expenses: 17,500

Income: 100,000

Tax Deduction: 17,500 - 7,500 (7.5% of 100K) = 10,000

Tax Savings assuming 15% income bracket should be 1,500! :clap2:

** The above example does not reflect my actual income or medical expenses. It is just an example with simple numbers.

If you are like me and didn't keep many/any receipts. You can call your local doctors office and pharmacy(s) and request they provide you with a total "out-of pocket" expense for the year to put on your taxes.

I can't swear to the accuracy of my comments above as I am not an accountant. My father in-law is an accountant and I will post an update with any additional info that may be useful once I get mine back from him.

ABOUT ME

Starting Weight: 254

Current Weight: 208

roggie · March 14, 2006

Also if you are self-employed and you have an LLC or Corp. it is 100% deductable. My LLC pays all expenses. So what ever amount I spend on medical is not looked at as a taxable income.

Tricia K. · March 14, 2006

Also if you are self-employed and you have an LLC or Corp. it is 100% deductable. My LLC pays all expenses. So what ever amount I spend on medical is not looked at as a taxable income.

Are you sure about this? My husband and I are self-employed and have an LLC but our accountant didn't advise us of this.

roggie · March 15, 2006

Absolutley positive!! Medical is a benifit the company extends to you, period. You need to have a sit down with your accountant. Just an example. Some people have the privilage to work for a company that provides 100% health care (a benifit), that company writes it off as a business expense. My company offers medical to it's employees. The employees happen to be board members of the LLC which are my wife and myself. There for all of our medical is provided from the company we work for.