Comments on: What % of yearly income to deduct health care from taxes? http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/ Health care issues Sun, 25 Jul 2010 21:53:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dawn R http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/comment-page-1/#comment-122 Dawn R Mon, 05 Jan 2009 16:52:15 +0000 http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/#comment-122 Well medical expenses go on a Schedule A which is for itemized deductions, you need to have over your standard deduction for it to amount to anything and, even at that, it is only a deduction so it does not decrease your tax dollar for dollar. A deduction decreases your tax by the dollar amount at your effective tax rate (*ex. itemized deductions in the amount of $14,000 is only $3,100 over your standard deduction so dollar amount of savings if you were in the 10% tax bracket would only be $310) Also you can only deduct after-tax health care premiums. You will want to look on your most recent pay stub to see if the insurance is pre-tax or after-tax. Most people are unable to take the deduction in the year because of that. *Married Filing Jointly example Well medical expenses go on a Schedule A which is for itemized deductions, you need to have over your standard deduction for it to amount to anything and, even at that, it is only a deduction so it does not decrease your tax dollar for dollar. A deduction decreases your tax by the dollar amount at your effective tax rate (*ex. itemized deductions in the amount of $14,000 is only $3,100 over your standard deduction so dollar amount of savings if you were in the 10% tax bracket would only be $310)

Also you can only deduct after-tax health care premiums. You will want to look on your most recent pay stub to see if the insurance is pre-tax or after-tax. Most people are unable to take the deduction in the year because of that.

*Married Filing Jointly example

]]> By: travelguruette http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/comment-page-1/#comment-121 travelguruette Sun, 04 Jan 2009 07:55:59 +0000 http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/#comment-121 It has to be over 7.5% of your income. It is an itemized deduction. You need enough itemized deductions to be more than your standard deduction. It has to be over 7.5% of your income. It is an itemized deduction. You need enough itemized deductions to be more than your standard deduction.

]]> By: wartz http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/comment-page-1/#comment-120 wartz Fri, 02 Jan 2009 07:12:56 +0000 http://www.healthcaretreatment.net/blog/healthcare/what-of-yearly-income-to-deduct-health-care-from-taxes/50/#comment-120 You can deduct health care expenses to the extent they are more than 7.5% of your income. You can deduct health care expenses to the extent they are more than 7.5% of your income.

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