Health Care
The most frequently asked tax questions related to Health Care
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Answer Tax QuestionsIs the payment I received from my work injury in which I lost the use of my hand taxable to me ?
Asked Monday, October 30, 2000 by an anonymous user
The employer's payment you received for permanent loss of use to your hand is tax free if if the payment is based solely on the nature of the injury.
Is the amount of my health care flexible spending account that I did not use get carried forward to next year ?
Asked Monday, October 30, 2000 by an anonymous user
A flexible spending account allows employees to get reimbursed for medical or dependent care expenses from an account they set up with pre tax dollars. A use it or lose it rule applies. Any amount not used in the current year is lost and not carried over to the following year.
Marijuana - prescribed by a doctor
Asked Tuesday, October 24, 2000 by an anonymous user
Even if the marijuana is legal under your state law, the cost of the marijuana that was prescribed by your doctor is not an allowed medical itemized deduction.
Nursing home costs
Asked Tuesday, October 24, 2000 by an anonymous user
Nursing home costs, including meals and lodging, are deductible as a medical itemized deduction, subject to the 10% / 7.5 AGI limitation on IRS Schedule A as long as the main reason for being in the home is to obtain medical care.
If the reason for entering the nursing home is not primarily to obtain medical care, then only the portion spent on medical treatment is deductible.
If the reason for entering the nursing home is not primarily to obtain medical care, then only the portion spent on medical treatment is deductible.
What is a Reverse Mortgage ?
Asked Tuesday, October 24, 2000 by an anonymous user
A reverse mortgage is used to convert home equity into cash. Payments take the form of a lump sum, line of credit or monthly payments over a specified number of years or over the life of the borrower. The amount being drawn is from the borrower's principal and considered tax-free and will not affect the taxability of Social Security benefits. Generally, the homeowner borrower must be age 65 or older and the residence must be close to being totally paid off. To view a reverse mortgage calculation schedule you can go to: http://www.reverse.org/help.calculator.htm
Chiropractor payments
Asked Monday, October 23, 2000 by an anonymous user
Payments to psychiatrists, psychologists, medical doctors, dentists, eye doctors, chiropractors, physical or occupational therapists, acupuncturists and medical care psychoanalysts, are itemized deductions subject to your 10% / 7.5% AGI limitation on IRS Schedule A.
Physical therapist payments
Asked Monday, October 23, 2000 by an anonymous user
Payments to psychiatrists, psychologists, medical doctors, dentists, eye doctors, chiropractors, physical or occupational therapists, acupuncturists and medical care psychoanalysts, are itemized deductions subject to your 10% / 7.5% AGI limitation on IRS Schedule A.
Acupuncture payments
Asked Wednesday, October 18, 2000 by an anonymous user
The amount you paid for acupuncture can be deducted as a medical itemized deduction on IRS Schedule A, subject to the 7.5% Adjusted Gross Income limitation.
Will I receive a tax form due to the 401(k) distribution I took out this year?
Asked Tuesday, October 17, 2000 by an anonymous user
If you received a distribution from a 401(k)pension plan, annuity or insurance contract, the company that makes the payment will send you a Form 1099-R. This form is also sent by organizations that distribute payments from a profit-sharing plan, Individual Retirement Accounts (IRAs), or other retirement programs. The IRS will also get the same copy.
