If you have medical expenses, you may get a tax deduction. There are many things you can deduct as medical expenses:Medical InsuranceDriving to the doctorHospitalsDoctorsSurgery (No cosmetic except for a medical reason)And many more…To get the deduction, first you take your total medical expenses, then deduct 7.5% of your income. The net can then be added to your other itemized deductions and if they are more than the standard deduction, you can right them off.So you may get a tax deduction.
Brian’s Tax Musings
Did you know there can be additional tax savings to having a traditional IRA or any qualified plan? In any business entity that passes through to your personal return, plans deducted in the entity can normally reduce your income in the entity. 401Ks reduce an employee’s salary. Traditional IRAs and self employed plans are deducted before calculating Adjusted Gross Income.I know this was a mouthful, but if you are still awake, the key to all these items is reducing Adjusted Gross Income. AGI is used for many different calculations on your tax return. If you have deductible medical expense, reducing AGI will give you a bigger deduction. Same thing with miscellaneous itemized deductions, that catch all of items that don’t go anywhere else. if you are in the entertainment industry or a salesman for instance, you probably have some misc itemized. Reducing your AGI will give you a bigger deduction. There are certain credits that you can’t get over a certain amount of AGI.You not only do your reduce your income by your retirement plan contribution, you can possibly increase your deductions in other areas. Check with me to see if you qualify for any of these deductions. I will [...]
Brian’s Tax Musings
There are credits that make going to school a tax saving event. In addition to a deduction for student loan interest, there are also the American Opportunity Credit for people getting a 4 year undergrad degree and the lifetime learning credit for less than full time students or postgraduate degrees. See this link:http://taxes.about.com/od/deductionscredits/qt/education.htmThis will help bring down the cost of a college education a little bit.