Self Pay Question

ACajunAnna · January 28, 2008

I have United Health Care and there is an exclusion in our policy for any treatment for obesity. I am waiting for the rejection letter so that I can file an appeal.

The appeal is not likely to be successful, so I am trying to figure out some self pay options. My doctor charges about $15,000 and that includes all visits for one year after surgery.

My question is for you accountants and tax people. I make under $30k per year and am single with no dependents. Can I claim the cost of this surgery on my taxes? And how will that affect my refund? What if I opt for the Mexico surgery that will cost less but have some travel expenses....are those deductible?

Thanks for any input that you might have on this subject. This forum really inspires me!

MaLiyah30 · January 31, 2008

I think I know the answer to your question. From my understanding you can claim 7.5% for the surgery. For example, if you made 30,000 than 7.5% of that would be 2,250. If your surgery is 15,000, subtract 2,250 from 15,000 to get a total of 12,750. The total of 12,750 is what you can claim as a deduction on your taxes. I hope that I explained it correctly. You can check the IRS website to find information there as well.

Cheers to you and yours!!!!!!!!!!!!!!!!!!!

Alexandra · January 31, 2008

Medical expenses, whether US or overseas, are deductible above the amount that equals 7.5% of your taxable income. (Maliyah, you had the effect correct, but your first sentence is very confusing.)

If you make $30K, 7.5% of that is $2250. So any amount OVER $2250 that you've spent on medical costs is what's deductible. If you spend $15,000 on surgery, you will be able to deduct $12,750.

What that does to your refund depends on how much you've had withheld. If you've been withholding taxes all year without the expectation of having this big deduction, you'll get a larger refund.