Claiming Surgery on Taxes

[Guest sdejong]

Just wanted to make sure everyone knows that you can claim your surgery on your taxes... Make sure you get a copy of your billing from OCC (I emailed Rene and got it the next day via email). Also I was told that you can claim your flight and all fills/doctors visits...

I'm sure you all knew this already but I wanted to make sure I put it out there...

shy

[julieburns]

I did know this and am so glad you posted it to remind me to save my receipts.

[MamaMichelle]

Publication 502 outlines what medical expenses are allowable. Here are a few highlights from that publication:

What Are Medical Expenses?

Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. They also include dental expenses.

Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation.

Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract.

What Expenses Can You Include This Year?

You can include only the medical and dental expenses you paid this year, regardless of when the services were provided. (But see Decedent under Whose Medical Expenses Can You Include, later, for an exception.) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged.

If you did not claim a medical or dental expense that would have been deductible in an earlier year, you can file Form 1040X, Amended U.S. Individual Income Tax Return, for the year in which you overlooked the expense. Do not claim the expense on this year's return. Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later.

You cannot include medical expenses that were paid by an insurance company or other sources. This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services.

Weight-Loss Program

You can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). This includes fees you pay for membership in a weight reduction group and attendance at periodic meetings. You cannot include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities.

You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. You can include the cost of special food in medical expenses only if:

The food does not satisfy normal nutritional needs,

The food alleviates or treats an illness, and

The need for the food is substantiated by a physician.

Medical Conferences

You can include in medical expenses amounts paid for admission and transportation to a medical conference if the medical conference concerns the chronic illness of yourself, your spouse, or your dependent. The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. The majority of the time spent at the conference must be spent attending sessions on medical information. The cost of meals and lodging while attending the conference is not deductible as a medical expense.

Here's the Link: http://www.irs.gov/publications/p502/ar02.html#d0e232

[mona-camille]

This is great, thanks!!! I have been saving all my receipts.

[GirlBarb]

Does anyone know if the expences have to be a certain percent of your income before they qualify?

[Kimmy in MD]

Barb, yes it does. I am not a CPA, but I believe in the US you have to itemize and it is 7%, could be wrong about the percent.

On another note, for those of us who are working with a HSA (HEALTH SAVINGS ACCOUNT) and you are lucky enough to have an employer that makes the contribution for you, either in full or in part, as long as you have the receipts, you can reimburse yourself from the account at any time in the future. The reimbursement does not have to be made in the year in which the expense is created.

In other words, if your employer puts in $3000 this year and $3000 next year, you can withdraw $3000 in 2009 and use it to pay off the credit card or loan you took to pay for the surgery. Also, you can contribute money to the HSA yourself on a PRE TAX Basis, just like the 401k and use that money to pay for the medical expenses. Every little bit helps.

[Kim2BSlim]

I am glad too since I am self-employed!

[OSuzanna]

Sorry, I'm bringing this topic up again, but I still can't get a clear cut answer as to whether or not I can claim MY surgery. When you go into the web site that Mamamichelle gave us and review "surgery, operation, cosmetic surgery, weight loss" I really says nothing about weight loss surgery.

Bottom line, could I claim my surgery - my BMI was around 36 and I had no co-morbidities and my surgery was not ordered by a physician - ?

Also, I still want to see if either my insurance or my Husband's insurance will pay for part of my surgery (I don't expect it to be paid 100%), I know I need to get paper work from OCC, but not sure what I should ask for and how detailed would the report need to be in order for insurance to consider some or all of the surgery?

So, I need to know:

1. Can I claim my surgery on our taxes?

2. What do I need from OCC to submit to the insurance companies?

Thanks for any insight!

Suzanna

[Butterfly1955]

Hi everyone!

Hubby (firey taxman) and I own five offices for H & R Block and he's been an Enrolled Agent for 25 years (in addition to being a full time captain at the fire dept). The medical expenses are deductible if they are over 7.5% of you AGI and don't forget the medical mileage for those of you who drive to the center, the doc, the fill center or your family doc. Please feel free to post here or send us email with any questions you might have and he can answer them for you. We'd be glad to help!

[OSuzanna]

Hi everyone!

Hubby (firey taxman) and I own five offices for H & R Block and he's been an Enrolled Agent for 25 years (in addition to being a full time captain at the fire dept). The medical expenses are deductible if they are over 7.5% of you AGI and don't forget the medical mileage for those of you who drive to the center, the doc, the fill center or your family doc. Please feel free to post here or send us email with any questions you might have and he can answer them for you. We'd be glad to help!

Thanks Terry, but I'm tax stupid - what's AGI?

[Cujo]

Thanks Terry, but I'm tax stupid - what's AGI?

Adjusted Gross Income

AGI is "total income", as defined by the tax code, less "statutory adjustments".

[Phoenix]

MamaMichelle and Butterfly1955, that was so helpful!!

Thanks!!

[julieburns]

Glad to know we have some helpers when it comes to "tax" issues on the board.