Tax Question for LapBand

Chris61 · February 4, 2007

I have seen questions in regards to how much did you pay for the Lap Band and saw that majority of people paid for it out of pocket, but no one has ever talk about what they have gotton back from taxes. How much of a refund were you ablr to get from your Federal and State income taxes with medical ded. of 7.5% of adjusted gross income. Was this enough to cover the cost?

sleepyjean · February 4, 2007

I don't know how many answers you'll get to this post, LOL. In a roundabout kind of way, you're asking people how much money they make. ;-)

A point of clarification: The rule isn't that you can deduct 7.5% of your adjusted gross income. You can only deduct the medical expenses you paid IN EXCESS OF of 7.5% of your adjusted gross. (IRS info here: http://www.irs.gov/publications/p502/ar02.html#d0e299)

The amount of the refund you get back, and whether it covers your surgery depends entirely on how much you paid for the surgery and how much money you make. If you get it done it Mexico, it's going to be way cheaper than it is stateside, and therefore your deduction will have more bang. I have read about people here paying less than $10k in Mexico, while others paid more than $20k here in the US.

As for your adjusted gross, that's going to be different for every single person. Here are a few examples (let's say the surgery is $15,000):

Adjusted Gross = $30k

7.5% = $2,250

You can deduct $12,750

Adjusted Gross = $60k

7.5% = $4,500

You can deduct $10,500

Adjusted Gross = $100k

7.5% = $7,500

You can deduct $7,500

Kynekke · February 5, 2007

Wow, I have no idea! I used TaxAct.. filled out how much I'd spent in medical this year and it did the math for me heh.

Chris61 · February 5, 2007

Thanks Sleepyjean for the clarification. I just want all to know that Iam not trying to find out what you made. I just trying to get an idea of how much you were able to get back because of the medical ded. and if it help to pay off the surgery much faster.

Chris

synicalchick · February 6, 2007

It's funny I came across this post today. My husband and I were just discussing if we would be able to get credit for this on our taxes. He seems to think since we don't own a house or have kids, it won't be enough to get credit for it because it has to be a certain amount but that we would save all medical receipts anyway. If I end up having to self pay it will be 16.5K here in Nashville Tn.

sleepyjean · February 6, 2007

I just want all to know that Iam not trying to find out what you made.

Nah, nobody thinks that

Tulip · February 6, 2007

I thought this was a good question too. However, there is one more wrinkle to the answer.

My husband and I have a health care reimbursement account through work (also called flexible health plan). We have pre-tax dollars taken out of paycheck, and can use those monies to pay for out of pocket medical costs ($12,900 lap band). That means I have saved an amount equal to $12,900 X my tax rate. Then I am not able to claim as a medical deduction because I paid for it with pre-tax dollars.

I wouldnt have qualified for much for excess over 7.5% anyway. This is a better deal for me, because my tax rate is higher than 7.5%

Terry

dotofoz · February 6, 2007

Thankfully mine is 100% covered by insurance, the 'membership fee' was covered under my flexible spending acct and am working on getting it to cover the liquid diet....Also, check out IRS publication 502, page 14....It is very helpful.