Close your eyes and pretend that it is almost April 15th instead of August 15th. Now take just a moment and answer the following questions:
1) Do you know which medical costs your family spent in 2008 were tax deductible, and which ones were not?
2) Did you keep all of the records and receipts of the expenses related to your family's health care in a place that is easy to find?
3) Did you know that even if you were caring for your adult son or daughter with a chronic illness in 2008, the costs of care may still be tax deductible?
I understand some of you may think I have had too much sun exposure, writing about tax deductions in August. However, my passion for the financial aspects of chronic illness is well grounded.
In a study conducted in 2005, there was evidence to support the fact that medical problems contribute to at least half of all bankruptcies in the United States, and the average bankruptcy filer was a 41 year old woman with children and at least some college education. Most of the bankruptcy filers in this study owned homes, and were primarily middle class by education and income. This study demonstrates that the financial strain of chronic illness and disability is not limited to low income families. All families may be at risk for financial catastrophe as a result of the cost of health care.
I hope this Share Post will help you to offset some of your medical expenses by reminding you that money you are spending this summer on medical expenses may be tax deductible, especially if you get good tax advice and are careful to track your spending.
The following two suggestions may help you to do both.
1) Make an appointment during this "off season" with a tax accountant. This time of year, you both may feel less rushed about your tax situation and a bit more thoughtful about what can be deducted from your taxes.
2) Keep track of the money you are spending on medical costs this summer. Document mileage, save toll receipts from doctor visits, and put all of your prescriptions on one credit card so the amounts can be easily tallied at the end of the year.
August is a great time to think about taxes.
Published On: August 13, 2008