Thursday, December 7, 2006


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IRS Publication 502
Is it worthwhile keeping all those medical expenses for your tax return?

If the amount of these expenses is over 7 ½ % of your adjusted gross income AGI, then it may help—but any less than 7½ % is not deductible since you have to subtract 7½ % of your AGI from your medical expense to get the deductible amount.

After subtracting it, then you add the remaining amountt to your mortgage interest, property taxes, contributions and any other deductions—then, again, it MAY help.
For it to help, it has to exceed your STANDARD DEDUCTION which you can substitute for all those itemized deductions.

This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this correspondence was not intended or written to be used and cannot be used for the purposes of avoiding penalties.