Tax Deduction?

[Guest BiCoastal]

I'm a 1040EZ kind of girl and really do not know much about taxes so this may seem like a stupid question but is the lap band something you can write off on your taxes? My insurance won't cover so I'm paying out of pocket.

Thanks!

[PrtyAntOvrYt 6]

I'm a 1040EZ kind of girl and really do not know much about taxes so this may seem like a stupid question but is the lap band something you can write off on your taxes? My insurance won't cover so I'm paying out of pocket.

Thanks!

It is something you can claim on your taxes. BUT it will only help you if it is a certain percentage of your income. I can't remember what the percentage is, however. You can check online with the IRS's website and Medical deductions. I paid $9950.00 for my surgery and it helped with my taxes a lot!

[salsa1877 10]

I paid 17000$ and it reallllllyyyy helped with the taxes. As long as you have a doctor that is willing to say that it was medically necessary (ie BMI 40+ or 35+ with co morbidities usually) then go for it. Though you only need the letter if the IRS audits you, which from what I understand is pretty rare. My Tummy Tuck will be written off on my taxes as well because my plastic surgeon is saying that it is medically necessary.

[Northwest_Nance 0]

Yes, the fact that it is tax deductible is the only thing that took a little bit of the pain out of having to pay for it myself.... I was banded a few weeks ago. I use TurboTax to figure my taxes so I went into my 2007 taxes and edited it as if I'd had the surgery last year to see how much more of a refund I would have gotten and I think it came out to about $4,000 more. Of course, it depends on what percentage of your income you have in medical expenses but for the average middle class earner, $17,500 is more than enough to qualify for a medical deduction.

[SanDiegoSusan 1]

Absolutely! Medical expenses are deducted on your Schedule A (which you will file this year even if you normally don't.) Medical expenses must be higher than 7.5% of your income in order to be deducted. A simple example is: Your surgery cost $17,500. You make $100,000. The first 7.5% of expenses are ignored so your deduction is $17,500 minus $7,500 (7.5% of $100,000) for a $10,000 deduction. If you make less your deduction is greater, i.e. a $50,000 income only ignores the first $3,750 and $13,750 is written off. If you make more your income is higher and the 7.5% disallowed is higher. Keep track of all medical expenses including co-pays for visits before the surgery and prescriptions unrelated to the surgery as all of this will be deductible.

Because you will be doing itemized deductions this year instead of the standard deductions there are other things to keep in mind. Keep track of all your charitable deductions. If you give away a bunch of clothes that are now too big - photograph what you are giving, itemize each item, and use an online calculator like "It's Deductible" (http://turbotax.intuit.com/tax-preparation/itsdeductible.jhtml ) to figure out your write off. (You will probably underestimate the value of your used items so this is handy, and a printout will let the IRS know how you figured out the value in the event of an audit. And remember, an audit is nothing to fear if you are honest and have the receipts you need.) Also keep track of all your cash donations and don't give cash! You must have a cancelled check to take a write-off now, so if you feed the red bucket for the Salvation Army during the holidays write a check instead of throwing in bills.

If you live in a non-income tax state (WA, NV, Alaska, Montana, FL and one or two I always forget) keep track of your sales tax paid, especially if you have a big purchase like a car. Part of your auto-reg fees are a write-off, property taxes and mortgage interest are no-brainers if now a very small amount that means you usually no longer itemize. And unreimbursed employee expenses (mileage to a seminar, lunch with the boss, uniform dry cleaning, supplies you purchase) have a 2% threshold (like the 7.5% above) but may be worth keeping track of. Also a safety deposit box used to hold investments (like silver, jewelry or stock certificates), investment expenses, and tax prep fees (including the cost of Turbo Tax the year before), all fall under this 2% threshold.

If your taxes are usually very simple this may be the year to hire a professional to maximize your deductions. (But don't let them make some up! Yes, I have seen that and the taxpayer gets punished, not the preparer!) Ask friends for a recommendation and ask for a fee range before you hire the preparer. (My guess: a simplified return with a Schedule A is $125 to $250 but if they spend more time with you and try to find every deduction including the ones I haven't listed here they may be worth a bit more.)

(The CYA:biggrin2:) Disclaimer: This is very general tax information and may or may not apply to your situation. Please see a tax professional to determine your own situation.

I'm a 1040EZ kind of girl and really do not know much about taxes so this may seem like a stupid question but is the lap band something you can write off on your taxes? My insurance won't cover so I'm paying out of pocket.

Thanks!

[ImGonnaLose 0]

As SanDiegoSusan mentioned, the lower your taxable income, the more you will be able to deduct. If you have a 401k plan, increase your contribution (if you can afford the lower take-home amount). I just increased my pre-tax payroll deduction to the max my employer allows in order to lower my 2008 income for this reason. Just be careful - I think there might be an IRS maximum that you can contribute to your 401k each year.

-Marianne

[Eeyore 0]

Wow this is great!!!! At least I can recoup some portion of the surgery etc. Thank you for asking this question BiCoastal!! I guess I'll have to look into finding someone to do my taxes this year too, but a deduction off my taxes would be well worth it!

[jlg 0]

Absolutely! Medical expenses are deducted on your Schedule A (which you will file this year even if you normally don't.) Medical expenses must be higher than 7.5% of your income in order to be deducted. A simple example is: Your surgery cost $17,500. You make $100,000. The first 7.5% of expenses are ignored so your deduction is $17,500 minus $7,500 (7.5% of $100,000) for a $10,000 deduction. If you make less your deduction is greater, i.e. a $50,000 income only ignores the first $3,750 and $13,750 is written off. If you make more your income is higher and the 7.5% disallowed is higher. Keep track of all medical expenses including co-pays for visits before the surgery and prescriptions unrelated to the surgery as all of this will be deductible.

Because you will be doing itemized deductions this year instead of the standard deductions there are other things to keep in mind. Keep track of all your charitable deductions. If you give away a bunch of clothes that are now too big - photograph what you are giving, itemize each item, and use an online calculator like "It's Deductible" (http://turbotax.intuit.com/tax-preparation/itsdeductible.jhtml ) to figure out your write off. (You will probably underestimate the value of your used items so this is handy, and a printout will let the IRS know how you figured out the value in the event of an audit. And remember, an audit is nothing to fear if you are honest and have the receipts you need.) Also keep track of all your cash donations and don't give cash! You must have a cancelled check to take a write-off now, so if you feed the red bucket for the Salvation Army during the holidays write a check instead of throwing in bills.

If you live in a non-income tax state (WA, NV, Alaska, Montana, FL and one or two I always forget) keep track of your sales tax paid, especially if you have a big purchase like a car. Part of your auto-reg fees are a write-off, property taxes and mortgage interest are no-brainers if now a very small amount that means you usually no longer itemize. And unreimbursed employee expenses (mileage to a seminar, lunch with the boss, uniform dry cleaning, supplies you purchase) have a 2% threshold (like the 7.5% above) but may be worth keeping track of. Also a safety deposit box used to hold investments (like silver, jewelry or stock certificates), investment expenses, and tax prep fees (including the cost of Turbo Tax the year before), all fall under this 2% threshold.

If your taxes are usually very simple this may be the year to hire a professional to maximize your deductions. (But don't let them make some up! Yes, I have seen that and the taxpayer gets punished, not the preparer!) Ask friends for a recommendation and ask for a fee range before you hire the preparer. (My guess: a simplified return with a Schedule A is $125 to $250 but if they spend more time with you and try to find every deduction including the ones I haven't listed here they may be worth a bit more.)

(The CYA:biggrin2:) Disclaimer: This is very general tax information and may or may not apply to your situation. Please see a tax professional to determine your own situation.

I have a question for you. My husband and I both are getting the surgery done this month, him on Friday and me on the 13th, but we are self-pay. Our insurance doesn't cover the procedure. Does ths mean that we will be able to deduct almost the full amount. He's not working now, hasn't been since November 2007. But we too had a bit of a windfall and the total cost for both of us will be $30,000k. That would be fantastic if it's true.

Thanks, :smile2::thumbup:

[SanDiegoSusan 1]

As married filing joint filers you still have the 7.5% rule and anything above that is a write off. So if this year you had $40,000 in COMBINED income because one of you didn't work a full year you get a $30,000 write off minus 7.5% of total income which is $3,000 for a total deduction of $27,000 and a taxable income of $13,000. This is further lowered $3,400 each for personal exemptions for a final taxable income of $6,200. (The $3,400 was for 2007 - it will be a little higher in 2008.)

This might be a great year to convert an IRA to a ROTH IRA at least until you fall out of the 10% tax bracket!

[SanDiegoSusan 1]

Don't forget to keep track of mileage and other travel expenses for medical care and to do your charity work. They can add up to a nice little deduction. www.mapquest.com does a nice job of giving you the miles from point A to point B.