Health Care Costs Can Lower Your Tax Bill

This may be the year to take a tax deduction for medical expenses. This write-off has long been one of the least useful for most taxpayers because medical costs have to be a significant percentage of income to be deductible.

With health-care costs rising, the medical deduction is worth looking into with your accountant. The medical deduction covers a wide range of expenses.

For complete details see Internal Revenue Service Publication.

Here are some basics:

To be deductible, a medical expense must be paid with after-tax, out-of pocket dollars.

Insurance premiums paid with pretax dollars aren't deductible and neither are medical expenses that are reimbursed by insurance, flexible spending plans or health savings accounts.

The Internal Revenue Service has announced the 2010 limitations on the deductibility of long-term care insurance premiums from taxes. For the first, the maxiumum deductible limit for an individual exceeds $4000.
For complete details see: 2010 Tax Deductions

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