Discover the 7 Magic Benefits That Allow You to Net 85% of Your Earnings – Take Home Pay Calculator
Doctor’s bill weighing you down? Don’t sweat it! They might be deductible. In fact, there are a lot of clients that we work with who are not aware of the fact that those costly doctor’s visits can benefit you come tax time. Here is a list provided by the IRS to see if your medical and dental expenses are deductible. This version is simplified so that you do not have to be a tax professional like me to understand terms like “AGI threshold” and “qualified expenses”:
All “qualified” medical and dental bills paid out of pocket that are above 7.5% of your Adjusted Gross Income(calculated on Line 37 of Form 1040). Qualified bills will be explained below.
Let’s start with the basics. Who’s eligible for an IRA? Just about everyone. More specifically an individual who: * has earned income of at least the amount of the contribution * is under age 70
That’s it to have an IRA. It is more complicated to determine if you can have a tax deductible IRA. If you are an “active participant” in an employer sponsored retirement plan, there are eligibility limits based on Adjusted Gross Income (“AGI”).
The third qualification test is that the expenses need to be “paid for the prevention or alleviation of a physical or mental defect or illness.” This can include a variety of expenses, ranging from doctor prescribed weight-loss or smoking cessation programs to any prescription medication you are taking. This does NOT include any voluntary weight-loss programs or over the counter medications(except for insulin).
In addition to the expenses above, mileage and/or transportation costs for medical care are also deductible. For example if you have to use public transportation to get to the doctor, save those receipts. Likewise, if you drive your own car, keep track of the mileage, especially if you have to drive out of state to receive medical care. In addition, tolls and parking fees are deductible. What is not covered is any international medical travel, so if you live near the Canadian or Mexican border and get your medications or treatment there, you cannot deduct these expenses.
A Contractor tax solution is managed by the solution provider company with the sole interest of the employees. Your benefits include: 1. Average earnings retention of up to 85% 2. No charges when you do not work 3. No charge to join or leave employment with a good contractor tax solution 5. Fixed longer-term contractors can still participate 6. Professional Indemnity Cover (subject to confirmation of profession and placement indemnity requirements) 7. Tax is handled for you
Please note that this list is only a recommendation and is not a substitute for a one on one consultation with your tax professional. If you would like to consult with myself or one of my fellow Tax Patriots, please contact us and we will assist you in any of your tax issues.
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