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Subject Author Date
Help With Taxes - Medical Expences Related - Which forms? CMORE 02-05-2007
Posted by Rich Carreiro on February 6, 2007, 9:39 pm
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> Ok, basically I spent all my savings last year after a
> terrible snowboarding injury blew my heal apart. I ended up
> spending 23,000 out of pocket on Medical bills last year. I
> made about 44K after taxes. So here is the formula
>
> MED EXP:
> 24K
>
> Income:
> 44K
>
> 7.5% of my AGI =3,300
> So, 24,000 medical - 3,300 = 20,700.
> These are my Medical expenses Exceeding 7.5% of my AGI:
> This would amount to a write off of $20,700 I suppose

Yes.

> Is this the correct?

Yes.

> Can I expect to IRS to just pay me all this?

NO!

This is a *deduction* -- something which reduces the amount
of income subject to tax -- NOT a credit (which would reduce
the tax dollar for dollar).

> Also, would I just use a 1040 in addition to the Form
> 1040, Schedule A to itemize my medical expenses? Also, on

If you're going to itemize deductions, you have to use a
Form 1040, yes.

> the Form 1040, Schedule A at the top it says medical and
> dental expences in colum one and > (see page A1). What is
> page A-1 and where is it?

That's referring to Page A-1 of the Form 1040 Instruction
Booklet.

> ones I need to use. It seems rather simple. Should I see a
> tax specialist or get turbo tax or something like that?
> Thanks for any/all help. I used to just use taxbrain to file
> when I would do basic 1040EZ.

If all you have is wage income and this medical deduction,
you still should be able to do your taxes yourself.

--
Rich Carreiro rlcarr@animato.arlington.ma.us

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Posted by John D. Goulden on February 6, 2007, 9:39 pm
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> Ok, basically I spent all my savings last year after a
> terrible snowboarding injury blew my heal apart. I ended up
> spending 23,000 out of pocket on Medical bills last year. I
> made about 44K after taxes...

Yes, you can deduct your unreimbursed medical expenses above
the 7.5% AGI floor on Schedule A. This includes ALL of your
medical expenses, not just expenses incurred because of this
injury. From your questions, it sounds like you need the
instructions for Schedule A. They can be downloaded from
www.irs.gov - click on the "More Forms and Publications"
link on the left side of the page. That's a fairly hefty
medical deduction so expect the IRS to question it -
meaning, have all of your receipts and proof that they
weren't reimbursed by your health insurance and are in fact
legitimate medical expenses.

In your post you ask "Can I expect to IRS to just pay me all
this?" I'm not sure what you mean by this. No, the IRS will
not pay your medical bills. But you won't have to pay tax on
about 20K of your medical expenses.

--
John D. Goulden

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Shyster1040 on February 6, 2007, 9:58 pm
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Page A-1 is the first page of the instructions to Schedule
A, which can be found included in the general Form 1040
instructions.

Provided you have the proper records for your medical bills,
the IRS will allow you to deduct those expenses as
miscellaneous itemized deductions (the IRS won't "pay" you
anything - unless of course you had a lot of tax withheld
from your pay already, in which case the IRS will "pay" you
a refund of the excess withholding).

The one thing you should be grateful for (taxwise, not
healthwise - healthwise, you have my condolences) is that
your income is sufficiently low that you most likely won't
be subject to the AMT even though your medical expenses are
almost half of your income.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by boasted on February 13, 2007, 1:49 am
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Thanks a lot for your responses. I appreciate the input.
I'll stop by my local library tomorrow to try and get all
the forms. I keep downloading little portions of the forms
from the IRS. I just need the whole 1040 to figure this out.
I guess I won't be expecting to get a lot of money back but
maybe I'll actually get a small return this year instead of
paying out like I usually do! I'll post back and let you
know how it goes. The good news is I have a functioning foot
that very well could have been chopped off! Albeit it does
have a TON of hardware in there

Thanks a lot! Chris

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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