Income Taxes

[leatha_g 4]

It's that time of year again and since I've been home sick, I've been taking advantage of the time to try to get my things together regarding medical expenses and possible deductions. I recall Marie posted a url in the past regarding those deductions but couldn't find it on a search, so here is the IRS one: http://www.irs.gov/taxtopics/tc502.html

Things are so much easier these days. All I have to do is go online to get anything I want. All my medication copays are right there ready to be printed off at Walgreens.com, my online banking is downloaded into MS Money, so I could just pull up reports for the 'healthcare' category or go through each payee and pull up reports for all that I had paid them. Wonderful!

I had 2 (count them)TWO surgeries in 2004 for which I paid $250 deductible each. UGH... And I had Lasik surgery (which I have to have redone on Monday) (which I also wished I had been smart enough to have saved the cash in a Flexible Spending Account instead of Financing) which I did on impulse. Stupid move..

I only have one question for those that may know. The IRS information does not tell me. For that Lasik surgery that I financed, do I deduct the total amount of the surgery financed? Or do I only deduct those payments made towards that in 2004? This could go both ways, so I'm just wondering if there is a tax guru out there who knows the real answer??

Thanks for your help and happy receipt hunting to you!

[New Hope 37]

Leatha, I gave myself Lasik surgery for Christmas, too! I originally financed it, but when I talked to Jackson Hewitt, they said I could only deduct the amount that I actually paid each year. So you should have the majority available to you for 2005 taxes.

[Iluvharleys 15]

When I was in accounting we were always told if the expense occured in that year you can deduct it. You just have to make sure you only deduct it one year.

You might want to check on that one though.

[leatha_g 4]

Yea, that was my thinking too, Betty, but I did read where there were things that must be in THAT year, so I didn't want to do the wrong thing. Then, again, I don't want them to come back at me next year saying I had the sugery in 2004.. ack....

That makes sense to me too, Marie. Hmm.. My thinking is that I'll just deduct what I've paid this year and see how it goes. It is stated in the rules that if you miss deductions one year you can add them the next, so maybe I'll be safer this way.

Thanks gals!

[Iluvharleys 15]

Leatha - Did you finance this at the Doctor's office or somewhere else?

[Iluvharleys 15]

This is how it should work: If you had the surgery in 2004, paid for it even if you financed it, as long as you didn't finance it through the place you had the surgery, you can deduct it as you PAID the bill. If you financed it through the place of business you had the surgery, you can only deduct the amount you paid. As far as the IRS they only know you paid the bill, if it is on your credit card that if fine, you paid the bill that you had.

Did I say that clear enough? If not let me know I will try to explain it more.

[New Hope 37]

My dr. worked w/Capitol One.

[Iluvharleys 15]

If you delt directly with Capitol one, and they paid the Doctor off, then the bill is paid and you can deduct the whole amount. IRS is only interested that the amount of the Doctor you are claiming is totally paid. They have no way of knowing or care if you put it on a credit card or not, you actually paid your bill with him.

[leatha_g 4]

I used Capital One Vision Fee Plan which is a loan, not really a credit card, but from what you are saying, the DR was paid in full, so that's what really matters? If that is the case. I might just get enough back to pay the darn thing off.

[Iluvharleys 15]

That is all that matters, the bill is paid. Irs can't tell you financed it!

[Jammin & Losin 1]

Taxes Yuck!!! I just hope I get a refund!!

[HarleyNana 10]

Betty that really makes common sense, although we know how uncle is. I paid for both of my sons to have that surgery, but since the account/records were in their name, being the patient, (they were 25 & 29), they got the deduction. It was worth it though, they both have been so happy with their wonderful new vision and no more fussing with contacts.

[Theresa Marie 0]

Leatha, did I understand you correctly? Are you having lasic surgery again? Why the repeat? Please let me know as I am hoping to have this surgery and not have to wear contacts any longer. Curious why you have to have it repeated? Will you have to pay again?? Hope you are feeling better honey.

[leatha_g 4]

Yes. I had lasik surgery back in February 2004. I did mono-vision in my left eye which seems fine. The distance vision in my right eye is still only 20/35 which is just bad enough to not be able to drive seeing as clearly as I'd like or making faces out in an airport. Not a secure feeling. During this time, the dryness left in my right eye has been a terrible side effect which hampered our ability to get it stabilized enough to tell how much enhancement I'd really need. So, for nearly a year now, I've been dealing with constant dryness, pain and discomfort and countless drops, ointments, gels etc. They don't tell you how common this type thing is up front. They leave it like you'll see 20/20 the next day and never mention all the acoutriments that go along with it. Of course everyone doesn't have this result, but many many do. they fail to tell you that part.

Anyway.. after temporary plugs, permanent plugs, upper plugs and all the over the counter purchases, we've finally stabilized the dryness, (which is now constant over-wetness) enough to do the enhancement. I only hope this helps to get back to some sense of normalcy. My eyes were in perfect health before this. No excessive dryness. My glasses worked perfectly. I sometimes wished I'd just left well enough alone.

But, I started it and my drs deal is 20/20 or it's free. There is a time limit in which he'll fix it and that time is drawing near. So I guess I need to finish it. Would I do it again? I'm not sure..

To make matters worse, that face I turned in at 19 is also not the same. lol. After years and years of wearing glasses I now have dark circles around my eyes which I surely have to deal more with without the glasses, not to mention how sunken in they seem.

If you wear contacts, maybe you won't have that issue. Contacts never agreed with me.

I don't know why we can't just be happy with who we are? lol.

anyway, I'm not looking forward to staring over with the drops every 5 minutes again, but it's a cross I'll have to bear, I guess.

I hope if you do it, your experience is a better one than mine. In my opinion, I would be extremely, EXTREMELY careful WHO you allow to your lasik surgery. The guy who did mine is billed as one of the most experienced Drs in the WORLD. Why? Because he herds humans in like cattle and he does surgery from sometimes 3am til 11pm at night. If I had it to do over, I believe I would find me an extremely reputable teaching hospital and have it done there where the care is the number 1 concern and they have time for the patient once the buck has been passed from one hand to another. I would also do ALOT more research online and not just the ads from doctors but there are many, many lengthy stories from patients themselves who have had severe consequences and lengthy inconveniences with their eyesight. These are just things the big advertisers don't tell. There are many many lawsuits on certain chains. This is some big stuff if you aren't one who gets it perfectly right the first time. Do your research, then do it again.