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IRS & deducting Medical expenses


Forum: Trying to Conceive with Medical Assistance

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  #1  
December 8th, 2009, 02:18 PM
Super Mommy
Join Date: Jan 2007
Location: Texas
Posts: 974
Since my insurance doesn't cover a lot of my fertility treatment, I did some research earlier in the year on medical expenses that may/may not be deductible with the IRS. Has anyone ever looked into this and/or listed the deduction on your tax return?

Here is the link from the IRS website: Publication 502 (2009), Medical and Dental Expenses

Here are a couple of points from the link above that I found of interest.

"How Much of the Expenses Can You Deduct?
You can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your AGI(Form 1040, line 38).

In this publication, the term ď7.5% limitĒ is used to refer to 7.5% of your AGI. The phrase ďsubject to the 7.5% limitĒ is also used. This phrase means that you must subtract 7.5% (.075) of your AGI from your medical expenses to figure your medical expense deduction.

Example.

Your AGI is $40,000, 7.5% of which is $3,000. You paid medical expenses of $2,500. You cannot deduct any of your medical expenses because they are not more than 7.5% of your AGI.

Fertility Enhancement
You can include in medical expenses the cost of the following procedures to overcome an inability to have children.

  • Procedures such as in vitro fertilization (including temporary storage of eggs or sperm).

  • Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children."
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3 failed fresh IVFs, 1 failed FET
Surprise BFP in 12/10 after acupuncture & herbs!!
1 beautiful, perfect daughterl!




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  #2  
December 8th, 2009, 02:40 PM
pattyandthemoos's Avatar Administrator
Join Date: Feb 2004
Location: Michigan
Posts: 61,614
I am planning to do this. This is one of the reasons I wanted to be on the schedule for December so that all my medical expenses fell into one tax year. I just talked to my accountant about this a little bit today. I didn't really discuss much but we have talked about this before. I am saving all the receipts for my meds and my doctor will give me a print out at the end of the year with all my payments.
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  #3  
December 8th, 2009, 02:45 PM
MommaLee's Avatar Platinum Supermommy
Join Date: Mar 2009
Location: Texas
Posts: 8,975
I had looked into this years ago when I had my LEEP and then when I was hospitalized for pancreatitis...but I didn't qualify because of the percentage to income line you quoted.
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  #4  
December 8th, 2009, 03:27 PM
AllisonC's Avatar Platinum Supermommy
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We've been keeping all our receipts for everything medical related. The only thing I'm not sure about is if meds are included because we have spent ALOT at the pharmacy this year. Anyone know?
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  #5  
December 8th, 2009, 03:38 PM
pattyandthemoos's Avatar Administrator
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Quote:
Originally Posted by AllisonC View Post
We've been keeping all our receipts for everything medical related. The only thing I'm not sure about is if meds are included because we have spent ALOT at the pharmacy this year. Anyone know?
When I mentioned this to my RE they told me to keep the receipts on my meds too. I am not sure why they wouldn't count. I will ask my acct about this next time I talk to her.
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  #6  
December 8th, 2009, 06:12 PM
Angel_Maker
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We get an invoice at the end of the year from the RE and give it to my tax guy....
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  #7  
December 8th, 2009, 09:45 PM
redbirds's Avatar Blessed Again!
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I'm keeping tabs too because I am sure we'll qualify this year. So, if I understand correctly, you can't deduct whatever it is leading UP to your 7.5%, but anything over that can be deducted? So, Tracey, using your example... you wouldn't be able to deduct anything unless it is OVER $3,000 and then ONLY the amount that is over $3,000? Just trying to wrap my head around it. Jeesh!
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  #8  
December 9th, 2009, 03:23 AM
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Join Date: Feb 2009
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Just thought I would share this info, I am sure all of you know but just in case someone doesn't.

You might want to find out if your employer offers a flexible spending account. You can put up to 5,000 in a year and they deduct it before taxes from your check in equal allotment over the year. This money can be used on most medical related costs (including infertility, and meds). This way every dollar is tax free unlike deducting it from your taxes where only greater than 7.5% is tax free.

I didn't have one last year but I am opening one for 2010.
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  #9  
December 9th, 2009, 05:30 AM
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Quote:
Originally Posted by redbirds View Post
I'm keeping tabs too because I am sure we'll qualify this year. So, if I understand correctly, you can't deduct whatever it is leading UP to your 7.5%, but anything over that can be deducted? So, Tracey, using your example... you wouldn't be able to deduct anything unless it is OVER $3,000 and then ONLY the amount that is over $3,000? Just trying to wrap my head around it. Jeesh!
Gywnne, that is how I understand it to be.

Penguin, thank you for the reminder about that! It is a great reminder for everyone! For 2009, I had only put $2500 in and unfortunately used it up within the first 2 weeks of 2009! For 2010, I have put the max in! It's a great program!
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~Tracey (42), mom to Reagan(born 08/07/11)

3 failed fresh IVFs, 1 failed FET
Surprise BFP in 12/10 after acupuncture & herbs!!
1 beautiful, perfect daughterl!





Last edited by ttb1105; December 9th, 2009 at 05:33 AM.
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  #10  
December 9th, 2009, 05:50 AM
KMH KMH is offline
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Hereís the scoop on deducting medical expenses on your tax return (I am an accountant, but please understand that Iím only providing general information. You should consult your tax advisor for information regarding your personal tax situation).

You can deduct medical and dental expenses that you pay during the year, including fees paid for medications (Rx only except for insulin), contact lenses, glasses, chiropractors, phsychiatrists, acupuncture, and mileage for driving to all your appointments (24 cents per mile or actual costs of gas, oil, tolls, and parking).

The limitations work like this...letís say you make $100,000 per year. You cannot deduct the first 7.5%, or $7,500 of medical expenses. If you pay $20,000 during the year for infertility treatments, you can only deduct $12,500.

Your medical expenses go on Schedule A of your tax return; you must itemize your deductions in order to deduct your medical expenses. The total for this schedule, which also includes mortgage interest, property taxes, sales taxes, and charitable giving, must be greater than your standard deduction ($11,700 for 2009 if you are married and file jointly) in order for you to itemize.

Does that make any sense? If you have any questions, ask away or PM me. Iíll try to help in any way I can!
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  #11  
December 9th, 2009, 06:36 AM
Super Mommy
Join Date: Jan 2007
Location: Texas
Posts: 974
Thank you Melissa! It does make sense! I always like to be educated and informed when we talk to our accountant!
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~Tracey (42), mom to Reagan(born 08/07/11)

3 failed fresh IVFs, 1 failed FET
Surprise BFP in 12/10 after acupuncture & herbs!!
1 beautiful, perfect daughterl!




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  #12  
December 9th, 2009, 06:53 AM
pattyandthemoos's Avatar Administrator
Join Date: Feb 2004
Location: Michigan
Posts: 61,614
Quote:
Originally Posted by KMH View Post
Hereís the scoop on deducting medical expenses on your tax return (I am an accountant, but please understand that Iím only providing general information. You should consult your tax advisor for information regarding your personal tax situation).

You can deduct medical and dental expenses that you pay during the year, including fees paid for medications (Rx only except for insulin), contact lenses, glasses, chiropractors, phsychiatrists, acupuncture, and mileage for driving to all your appointments (24 cents per mile or actual costs of gas, oil, tolls, and parking).

The limitations work like this...letís say you make $100,000 per year. You cannot deduct the first 7.5%, or $7,500 of medical expenses. If you pay $20,000 during the year for infertility treatments, you can only deduct $12,500.

Your medical expenses go on Schedule A of your tax return; you must itemize your deductions in order to deduct your medical expenses. The total for this schedule, which also includes mortgage interest, property taxes, sales taxes, and charitable giving, must be greater than your standard deduction ($11,700 for 2009 if you are married and file jointly) in order for you to itemize.

Does that make any sense? If you have any questions, ask away or PM me. Iíll try to help in any way I can!
Thanks Melissa! I didn't know about the mileage. I drive an hour there and back so I need to go backtrack all my appts now.
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  #13  
December 9th, 2009, 06:58 AM
redbirds's Avatar Blessed Again!
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Thanks, Melissa! I didn't know about mileage either, so I'm going to have to find all my dates and track that down. Great info to have!
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Hat's off to Vicki for my cute siggy, thank you!
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  #14  
December 9th, 2009, 07:57 AM
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Melissa to the rescue
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  #15  
December 9th, 2009, 11:06 AM
AllisonC's Avatar Platinum Supermommy
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Wow! Great information! Thanks!
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