With all of the attention given to the new tax provisions passed in the American Taxpayer Relief Act of 2012, it may be tough to focus on last year’s laws in order to complete last year’s tax return. Whether you’re planning to complete your return by April 15 or file for an extension, don’t forget the deductions and credits available for 2012 – especially when it comes to medical expenses.

 

[CLICK HERE to read the article, “Deducting Medical Expenses: You can deduct uninsured health costs although the rules change in 2013,” at Nolo.com, 2013.]

 

[CLICK HERE to read, “Topic 502 – Medical and Dental Expenses,” at IRS.gov, February 4, 2013.]

 

With so many boomers caring for aging parents, you may be eligible to deduct some of those expenses. If Mom earned less than $3,800 in 2012 (in most cases, that income level excludes Social Security benefits) and you provided more than half of her financial support, you may be able to claim her as a dependent – with the accompanying dependent exemption. This is true even if she doesn’t live with you.

 

In fact, if you paid for any of her medical or nursing care expenses, as well as home medical equipment or improvements for wheelchair access, you also may be able to itemize your costs as qualified medical expenses. Your 2012 return is the last one in which you can itemize and deduct medical expenses that total more than 7.5 percent of your adjusted gross income – including out-of-pocket expenses for medical, dental or vision care. Starting in 2013, the threshold for itemizing medical expenses will be 10 percent.

 

[CLICK HERE to read the article, “Seven health tax tips,” at LifeHealthPro.com, March 8, 2013.]

 

[CLICK HERE to read the article, “Did You Make Medically Necessary Home Modifications?” at HouseLogic.com, December 21, 2012.]

 

Other deductible medical expenses include:

 

·         The standard mileage rate is 23 cents per mile of use of your car for medical purposes

·         Premiums for Medicare Part B, Part D (Prescription Drug) or a Medicare Supplemental plan that were deducted from your Social Security check may qualify as   deductible

 

[CLICK HERE to read the article, “Tax deductions for medical expenses,” at The Orange County Register, March 3, 2013.]

 

It’s a good idea to incorporate tax planning as part of your overall financial plan. If you’d like to discuss strategies you can employ today to help reduce your tax bill in the future, please give us a call.

 

Your financial professional is not permitted to offer, and no statement contained herein shall constitute tax, legal or accounting advice. Individuals should consult with a qualified professional regarding the applicability of this information to your situation. By contacting us you may be provided with information regarding the purchase of insurance products.

 

The information and opinions contained herein are provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

 

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Source: Woods Blog Old

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