Are Medicare Premiums and Medical Expenses Tax-Deductible?

But wait … there’s more …

Unfortunately, there’s a threshold you have to reach to be able to claim medical expenses on your tax return.

As far as your 2012 return is concerned, only expenses exceeding 7.5% of your Adjusted Gross Income (AGI) are tax-deductible.

This means:

If your 2012 Adjusted Gross Income was $40,000:

• 7.5% of your AGI = $3,000
• Only qualifying medical expenses exceeding $3,000 for the year are tax-deductible

If your 2012 Adjusted Gross Income was $60,000:

• 7.5% of your AGI = $4,500
• Only qualifying medical expenses exceeding $4,500 for the year are tax-deductible

If your 2012 Adjusted Gross Income was $80,000:

• 7.5% of your AGI = $6,000
• Only qualifying medical expenses exceeding $6,000 for the year are tax-deductible

2013 Alert!

The threshold for claiming medical expenses on your federal tax return will increase for the 2013 tax year. When you file your 2013 return next year, only medical expenses exceeding 10% of your Adjusted Gross Income will be tax-deductible. This represents a 33% rise over the current threshold, and could result in a substantial increase in your out-of-pocket medical costs during the coming year and beyond.

One obvious solution to that development is to enroll in a Medicare supplement plan. Medigap Plan F, for example, is designed to fill all the high-risk gaps in basic Medicare coverage. Plan F covers all Medicare-approved costs not covered by Medicare Part A and Medicare Part B, and will leave you without worry about having to pay out of pocket for any Medicare-approved hospital or medical costs including deductibles, copayments, and coinsurance charges. Contact MedicareMall to learn about Medigap Plan F and all your best healthcare options.

Have you claimed your 2012 medical expenses yet? Leave a comment below!

 

Are Medicare Premiums and Medical Expenses Tax-Deductible?© 2013 MedicareMall.com