According to an article I read, seniors' threshold stays at 7-1/2% for medical expenses. Did you know that?
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I'd gladly forego the tax benefit if I could get my medical expenses below EITHER threshhold."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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There is a side issue
While "seniors" will get a break (can use 7.5% floor instead of current 10% floor for 2013), that separate exclusion will expire at the end of 2016.
Beginning 01/01/2017, *ALL* filers will be looking at the 10% floor for claiming medical deductions.
SOURCE: http://www.irs.gov/Individuals/2013-...dical-expenses
It's kinda like those teaser rates you get with cable television.....sounds good until the "regular-price" bills start arriving.
FEComment
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I did not know that.Comment
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Maybe it's designed to encourage seniors to phase out spending money on such frills as medications, doctor visits, surgeries and the like. More or less like weaning someone off a bad habit. That is part of the urpurpose of the tax code in encouraging acceptable behavior and discouraging unacceptable behavior.
After all, we're just being selfish and irresponsible to the greater good of society by wasting all these fine medical resources in a futile effort to live longer.Last edited by JohnH; 09-25-2013, 05:23 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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here in Oregon
You can get a prescription for the final solution. And it's deductible in computing state taxable income 100% if your are age 62 or older.Originally posted by JohnH View PostComment
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Very compassionate state, I see.
That gives a whole new meaning to "enjoying the benefits of every tax break available to you.""The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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ACA May Help to get at 10%
With the new ACA mandated insurance, I think some taxpayers may actually get to the 10% if they paid insurance premiums with after tax money? Then add your usual co-pays, deductibles etc.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Half full or half empty ?
That is an interesting, and likely accurate, spin to things which I had not considered.Originally posted by ATSMAN View Post
Over the years, with some clients it's been a constant struggle of "But I PAID those insurance premiums....it's right there on my pay stub!!" The word "pretax" may as well have been written in Swahili.
Of course, the logic you cite also gets seriously close to that used by the Washington "folks" when they pound their chests and say "We cut expenses!!...well, more correctly, we will not raise them as much this year as we did last year."
But getting back to ground here, I do foresee some nice "discussions" in upcoming tax interviews when you have to factor in employer/non-employer medical insurance premiums, what is/is not pretax, and then that smallish gorilla, known as the SEHI AGI adjustment, which will certainly be lurking in the room.
Can I deduct as a business expense a large bottle of aspirin, or even better a couple fifths of Jack Daniels??
FEComment
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Change your annual questionnaire?
My suggestion to other return preparers is to amend their annual questionnaire for 2014 and ask those questions. Are you getting your health insurance from your employer or state exchange. I will also alert my clients to keep better track of their co-pays, deductibles and other qualified medical expenses because if they get their insurance from the exchange there is a possibility we may cross the 10% threshold.
Previously most of my clients who typically never crossed the 7.5% threshold never kept track of all that because it was moot.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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