Medical Deductions – DougFreemanCPA.com

9 tax considerations if you’re starting a business as a sole proprietor

Entrepreneurs, Medical Deductions, Quarterly Estimated Tax Payments, Self Employment Tax, Small Business, Small Business Owners, Small Business Tips, Sole Proprietors / Douglas Freeman

When launching a small business, many entrepreneurs start out as sole proprietors. If you’re launching a venture as a sole proprietorship, you need to understand the tax issues involved. Here are nine considerations: 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you’re currently eligible to claim […]

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It’s possible (but not easy) to claim a medical expense tax deduction

Federal Taxes, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses / Douglas Freeman

One of your New Year’s resolutions may be to pay more attention to your health. Of course, that may cost you. Can you deduct your out-of-pocket medical costs on your tax return? It depends. Many expenses are tax deductible, but there are several requirements and limitations that make it difficult for many taxpayers to actually

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Don’t forget to empty out your flexible spending account

Deductable Expenses, Flexable Spending Accounts, Itemized Deduction, Medical Deductions, Medical Expenses, Tax Savings / Douglas Freeman

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. You may have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period). As the end of 2023

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The IRS clarifies what counts as qualified medical expenses

AGI (Adjustable Gross Income), Federal Income Tax, FSA, HSA, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses / Douglas Freeman

If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes. Basic rules and IRS clarifications. You can claim an itemized deduction for qualified medical expenses that exceed

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How inflation will affect your 2022 and 2023 tax bills

Deductions, Federal Gift Tax, Federal Tax Deductions, Federal Taxes, Flexable Spending Accounts, Income Tax, Individual Income Tax, Inflation, Medical Deductions, Retirement / Douglas Freeman

The effects of inflation are all around. You’re probably paying more for gas, food, health care, and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next year’s inflation-adjusted tax amounts for several provisions. Some highlights. Standard deduction.

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Caring for an elderly relative? You may be eligible for tax breaks

AGI (Adjustable Gross Income), Caring For An Elderly Relative, Dependent Tax Credit, Medical Deductions, Medical Expenses / Douglas Freeman

Taking care of an elderly parent or grandparent may provide more than just personal satisfaction. You could also be eligible for tax breaks. Here’s a rundown of some of them. 1. Medical expenses. If the individual qualifies as your “medical dependent,” and you itemize deductions on your tax return, you can include any medical expenses

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Are you eligible for a medical expense tax deduction?

2020 Tax Return, AGI (Adjustable Gross Income), Deductions, Health Care Insurance, Insurance, Itemized Deduction, Medical Deductions / Douglas Freeman

You may pay out a bundle in out-of-pocket medical costs each year. But can you deduct them on your tax return? It’s possible but not easy. Medical expenses can be claimed as a deduction only to the extent your unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical expenses are deductible only if

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The COVID-19 relief law: What’s in it for you?

(CAA) Consolidated Appropriations Act of 2021, (COVIDTRA) Covid Tax Relief, (TCDTR) Taxpayer Certainty & Disaster Tax Relief Act, AGI (Adjustable Gross Income), Charitable, Deductions, Medical Deductions / Douglas Freeman

The new COVID-19 relief law that was signed on December 27, 2020, contains a multitude of provisions that may affect you. Here are some of the highlights of the Consolidated Appropriations Act, which also contains two other laws: the COVID-related Tax Relief Act (COVIDTRA) and the Taxpayer Certainty and Disaster Tax Relief Act (TCDTR). Direct

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Can you qualify for a medical expense tax deduction?

Deductable Expenses, Deductions, Federal Income Tax, Health Care, Health Care Insurance, Itemized Deduction, Medical Deductions, Tax Deduction / Douglas Freeman

You may be able to deduct some of your medical expenses, including prescription drugs, on your federal tax return. However, the rules make it hard for many people to qualify. But with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes. Itemizers must meet a threshold. For

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Seniors: Can you deduct Medicare premiums?

AGI (Adjustable Gross Income), Deductable Expenses, Deductions, Health Care, Health Care Insurance, Income Tax, Insurance, Medical Deductions, Medicare Premium Tax Deduction, Medicare Taxes, S Corporation, Self Employed / Douglas Freeman

If you’re age 65 and older, and you have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially if you’re married and both you and your spouse are paying them. But there may be a silver lining: You may qualify

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