Beyond your house and truck payments, health insurance tends to be one of the biggest fixed expenses for a truck driver. While it’s possible to lower your monthly payments, it requires you and your family to take on a higher deductible. If a large medical expense presents itself, the idea of coming up with the money to pay the bill doesn’t excite many people.
The good news is that if you have medical expenses and they makes up more than 10% of your adjusted gross income (through December 31, 2016 the threshold is 7.5% if you are 65 or older) then you might be able to claim the expense as an income tax deduction.
What costs and expenses qualify?
Deductions are not limited to just medical expenses. This also extends to both dental and vision expenses as well. If you have an eye exam, purchase glasses or contacts, need braces or even require a root canal, all of these are deductible expenses. You can even deduct your health insurance premiums themselves. To get a more detailed list of expenses that qualify, check out IRS Publications 502.
One thing to remember is that if you have been reimbursed from your insurance company for any expense, then you will not be able to claim it on your tax return. This also means that if you use a Health Savings Account or a Flexible Spending Account you will not be able to receive a double benefit.
You Must Itemize
If you are going to claim a medical expense deduction then you can’t claim the standard deduction on your taxes. Instead you must itemize your deductions. If you have questions about whether or not it makes more sense for you and your family to take the standard deduction or itemize you can talk to a tax accountant at ATBS and they can tell you what is best for your situation.
Also Read: Tax Deductions 101
Payments Need to be Made During the Current Tax Year
If you will be itemizing expenses that you incurred in 2015 then it’s important that you also paid the bill in 2015. You are not allowed to claim any past expense that took place during a previous year and the same goes for any future expenses. If you are paying with a credit card then the date paid will be acceptable. If you pay with a check, then the postmark date should be sufficient.
If you have any questions about deducting medical expenses give ATBS a call at 866-920-2827.
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