taxes

[Alexandra 55]

I'm getting all my tax things ready waiting on one last W2. Just another question, can I claim my friend's airfare that came along with me to Mexico that I paid for. I didn't think so, but just checking to be sure! Thanks

Was the friend's presence really medically necessary? Or could you have managed on your own? That's the acid test. If the friend was, say, an attendant you need to assist because of mobility issues, you might be able to make the medical necessity claim. Otherwise, no.

[edazul 0]

So, trying to get this straight? You can claim all of this even if it was done in Mexico??

[kellymoos 4]

The main words in this phrase is adjusted gross income.

You may deduct only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income

[Wheetsin 714]

I'm getting all my tax things ready waiting on one last W2. Just another question, can I claim my friend's airfare that came along with me to Mexico that I paid for. I didn't think so, but just checking to be sure! Thanks

I emailed this question to a friend of mine and her answer is no. She is a CPA and has done taxes for over 20 years. You can ask your accountant or tax person when you get yours done to be sure.

[Wheetsin 714]

Something else I read here.. it's true that a small percentage of the population is audited, but it's also true that there are certain red flags that can virtually guarantee you will be audited, if present with other influencing factors. HIgh deductions after an established history without is one of those flags. In other words, to some degree, the IRS has "formulas" they use to determine, in part, who they will audit. A + B + C = likely audit.

For example, my in-laws wanted to give DH a large cash sum as a gift, but they live overseas so it was going to be subject to some unusual tax liability. The amount was over $30k, and anything over $10k is 1) tracked and 2) has to be claimed. Our accountant assured us this was one of the flags the IRS uses for audit. We found a perfectly legal way around it, but I would have to strongly advise against "it's only a problem if you're audited" if it's something that is not true, if anyone is considering that. Major major fines & penalties waiting for situations like that.

[Kryssa 1]

I work for corporate H&R Block; have for over 3 years, but my degree is in Financial Planning so I have more knowledge than I've gotten working there.

You can not claim your friend's airfare, not even if you paid it (and most certainly not if she paid it). With lapband, you are discharged within 24 hrs, the IRS is not going to believe a support person was medically necessary. Unless of course that friend is a RN, then you could try it, again provided you paid for the ticket.

If you have a question you would like answered by the IRS (before you do something that will trigger an audit) call them at 1-800-829-1040. But please note: just because you did something that results in your return being flagged does not mean you will be audited. The IRS chooses those who look most like fraudulent cases and from whom they are likely to get paid. A surgery can cause enough medical expenses to itemize, and you aren't the first one to have surgery. Think about those poor people who have to go through in vitro several times before they conceive. The IRS also looks for the types of returns that have a high incidence of fraud in the past, for example: they are checking 50%+ of Head of Household returns this year due to EIC fraud, but believe me not everyone will be getting an audit letter.

Make sense?

[Wheetsin 714]

Are you in Kansas City? Corporate, as in 4400 Main St.?

[roggie 0]

Wheetsin my wife is from Norwegian and we went through something similar. The way the tax law reads is that she is exempt in the U.S. however she has to pay taxes on the money in Norway. Depending on the dollar amount sometimes we do not have to pay taxes. As far as the surgery and expenses go I am fortunate. I have an LLC and the LLC pays for everything. Since i am going to be a self pay my LLC eats the bill all the way to aftercare. Since I work for the company it is a company benifit. Not all are as lucky. The reason I set up an LLC for my business rather than stick with sole/partner is for health insurance reasons. The only way I can get health insurance with out being turned down is through a group policy. Louisiana a group policy only has to have 2 employees so I put my wife down as an owner/board member. What really sucks about my insurance is the exclusion for WLS:cry for those that read on here and have not had surgery yet and have a small business you ought to look into an LLC or Corp. it will save you bundles of money.

[Wheetsin 714]

roggie, do you live in America? Did I read right that you're in Louisianna? What money does your wife have to pay taxes to Norway for? What is her residency status? My husband is not an American citizen, he too is from Scandinavia, but he is a permanent legal resident. He has a SSN and pays regular federal & state taxes (and cannot vote - what happened to taxation without representation?! Oh yeah - that's just for citizens! ).

My husband does not owe any money to his home country, other than his student loan payments, but since he maintains original citizenship he is still eligible to vote - they send him a proxy ballot.

Also - please explain more about the LLC. I work full time, but I also own my own business which is an LLC. My coverage through my employer is taking care of my surgery, but you've peaked my curiosity -- how does the LLC save the money? Do you just mean deductions through providing your own insurance?

[roggie 0]

Wheetsin, yes i am in the states. I am in and am from Lousiana. My wife is the same as your husband, permanent resident with SS number and all. The deal is her mother has been diagnosed with alzheimer's. She (my mother-inlaw) now lives in assisted living in Norway. When she moved from her estate and to this assisted living the girls, my wife and her 2 sisters, inherited the estate. Now in Norway one does not have to die to leave their estate to heirs. Obviously she is not of sound mind and can not make rational dicisions. The assisted living is paid by the state of Norway through the "free health care". So their mother no longer needed money with exception of clothes, everything else is paid for. Becasue it was an inheritance, yet the mother is still alive, she was not subject to U.S. taxes. Also if we recieve a large sum of money from a relative in Norway it is subject to Norwegian tax law not U.S. In other words when my father in law sends money he claims it on his taxes in Norway and my wife pays taxes if there are any. She does not have to pay tax on it again in the U.S.

The LLC you ask? Even though you have Insurance through a job or from your spouse you should be able to pay any of your co-pays, drugs and deductables with the LLC. After all it is a benifit extended to you . You really need to get with your accoutant for specifics. Also another thing is that if you can get the same coverage, on any type of policy be it personal or group, and pay the same as you are now through your work place then it may be benificial for you to go entirely through the LLC. If your employer is paying half and withholds the other half out of your pay check then I do not think you are taxed on the amount withheld. If you are paying taxes on the amount withheld you may want to ask to pay your half of the premium seperate from your paycheck. You can then cut your employer a check from your LLC for your half of the premium. Again check with your CPA on this.

[roggie 0]

By the way is your husband from Sverige?

[Kryssa 1]

Oh no, I'm not in Kansas City. I thought you were asking if I worked for one of the franchises. I'm the night-time office leader at a store in GA.

[justamom 0]

Wow - I never realized we could deduct this. I was self-pay so this is awesome! Thanks for all the useful info.