Reminder that medical expenses are tax deductible

[wolfpacker]

Just wanted to make everyone aware in case you did not know already: for those paying cash for their implant, the IRS allows you to deduct medical expenses beyond 7.5% of your AGI. So for example if your AGI was $60k, medical expenses beyond $4500 would be tax deductible. For Dr Eid's price of about $32k, this would knock $27.5k off of your taxable income for the year, saving you about $6k in taxes (aka increasing your tax refund by $6k).

This is just napkin math and your situation will vary, but just keep in mind for those paying cash for their implant, you can get a nice chunk of that hefty bill back at tax time.

[MK1965]

Wolfpaker,
I use my HSA where I put pre tax certain amount of mone into my account as per IRS aloud limits.
I pay everything with HSA credit card.
Do you know if this is also tax deductible?
Thank you,
MK

[Lost Sheep]

Wolfpaker,
I use my HSA where I put pre tax certain amount of mone into my account as per IRS aloud limits.
I pay everything with HSA credit card.
Do you know if this is also tax deductible?
Thank you,
MK

I am not a tax accountant.

Think about it. The money in your HSA was not included in your taxable income. How could that money be, then, deducted from your taxable income. It was never included in your taxable income in the first place.

On the other hand, my Tax Law Instructor told the class, "Take every deduction to which you THINK your are entitled. If you miss a deduction/benefit, it is gone forever. If you take a deduction to which you are not legally entitled and the IRS catches it, they will ask for the money and probably interest, but if it is a reasonably honest mistake, no penalty." So, take every deduction you think might fly.....but keep the cash benefit on hand so when the IRS DOES catch an honestly made over-deduction, you can pay them in a timely manner.

[wolfpacker]

As Lost Sheep said, I don't believe expenses from your HSA account are tax deductible. I was mostly referring to folks who pay for surgery from their plain ole bank account.