Monday 27 January 2014

File Your Medical Expenses with IRS Publication 502

If your deductions are itemized and dental and medical expenses are anticipated to be included then with the help of IRS publication 502 you can determine which expenses will actually qualify during a tax year. After calculating the sum of all the medical and dental bills that are deductible, you can deduct any portion that exceeds 7.5% of your AGI.
Dental and medical expenses that you incurred for prevention, diagnosis and treatment of either physical or mental illness are defined by IRS publication 502. Equipment expenditure and cost of diagnostic services are also included along with the supplies that are necessary for servicing these particular conditions. Apart from the prescribed medication insulin is the solitary nonprescription material that can be deducted and cosmetic surgeries are not also covered by the IRS definition.
Eligibility for Deduction:

According to the guidelines set forth by IRS publication 502 an American tax-payer can claim deductions during a tax year if the expenses are actually incurred. As per the guidelines, if the payment for a certain treatment is made one year and the treatment actually takes place in the following tax year, the expenses can be reported on the tax return of the previous year. According to this publication an expense is to be reported in the year, during which it was incurred and not with the year when the services were actually received.
IRS Form 2106

No comments:

Post a Comment