Health Care
The most frequently asked tax questions related to Health Care
Weight Watchers payments
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
Weight-loss programs are not deductible unless related to a specific medical condition and recommended by your doctor.
Is term insurance better than whole life insurance ?
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
The answer depends on your personal objectives and needs. Term life insurance is much less expensive over the guaranteed premium period of the policy, which can be as long as thirty years in some states. However, if your family's need for life insurance exceeds the guaranteed period, then whole life can end up being less expensive. Also, whole life insurance builds cash value within the policy that can be a source of capital to meet living needs.
Over -the-counter drugs
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
The cost of over-the-counter medicines and drugs, such as aspirin, cold tablets or other cold remedies are not deductible. Deductible medicine and drugs must be obtained through a prescription by a doctor.
Lamaze childbirth class payments
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
Lamaze childbirth classes are deductible as a medical itemized deduction subject to the 10% / 7.5% AGI limitation on IRS Schedule A. However, classes on caring for newborns or on fetal development are not deductible.
Massage therapy payments
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
Massage therapy sessions for general stress reduction, even if recommended by a doctor, do not qualfy as a medical itemized deduction.
Traveling to doctor's office
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
The costs of travel to and from your doctor's office are part of your medical itemized deductions on IRS Schedule A subject to the 10% / 7.5% of your AGI limitation.
You may claim the actual travel expenses, or the IRS allows a 24 cents a mile flat rate, plus parking fees and tolls.
You may claim the actual travel expenses, or the IRS allows a 24 cents a mile flat rate, plus parking fees and tolls.
Motel lodging expense - cancer treatments
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
Certain limitations apply. The costs for lodging while receiving treatment at a licensed hospital or outpatient clinic is limited to $50 per night per person.
If both parents travel with the child then $100 is allowed as the maximum lodging deduction per day.
This amount would be added to the other medical expenses subject to your 10% / 7.5% AGI limitation on IRS Schedule A for itemized deductions.
If both parents travel with the child then $100 is allowed as the maximum lodging deduction per day.
This amount would be added to the other medical expenses subject to your 10% / 7.5% AGI limitation on IRS Schedule A for itemized deductions.
Psychiatrist payments
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
Payments to psychiatrists, psychologists, medical doctors, dentists, eye doctors, chiropractors, physical or occupational therapists, acupuncturists and medical care psychoanalysts, plus other medical payments, are itemized deductions subject to your 10% / 7.5% AGI limitation on IRS Schedule A.
home improvement work in exchange for dental services
Asked Wednesday, September 27, 2000 by an anonymous userCPA Answer:
Exchange of goods or services without money being exchanged is called Bartering. The fair market value of the exchanged goods or services must be included as income on both parties tax returns.
The income should be reported on your business expense Schedule C form or as miscellaneous income on Form 1040 line 21.
The income should be reported on your business expense Schedule C form or as miscellaneous income on Form 1040 line 21.