Medical Expenses TAX Deductions

[peppy]

I was adding up all of our medical expenses tonight, and it is going to be tight for us to deduct our expenses.
My wife and I do not itemize our deductions, but we can take medical expense if they exceed 7.5% of our AGI.
Most of our expenses have been from March-June 2007. I thought the Hospital had sent all of the bills, they had sent us money back saying that we had over paid.
Today we get a bill for $1100. Shirt! Can we roll everything into 2008 and take the deductions then or are we just screwed out of the $1100?
We drove over 11K miles and only get .20 a mile and 50% of meals, what a load of crap.


Sorry for the rant.

All advise is welcome.

[MBAtarga]

Isn't it just the amount that is over the 7.5% AGI that you can deduct - that is, not the whole amount?

[peppy]

Originally Posted by MBAtarga

Isn't it just the amount that is over the 7.5% AGI that you can deduct - that is, not the whole amount?

I do not know Mark, that is why I posted.

[MBAtarga]

It's what I thought - from this page (italics in the text below are mine):

http://www.irs.gov/publications/p502/ar02.html

How Much of the Expenses Can You Deduct?

You can deduct only the amount of your medical and dental expenses that is more than 7.5% of your adjusted gross income (Form 1040, line 38).

In this publication, the term “7.5% limit” is used to refer to 7.5% of your adjusted gross income. The phrase “subject to the 7.5% limit” is also used. This phrase means that you must subtract 7.5% (.075) of your adjusted gross income from your medical expenses to figure your medical expense deduction.

[RWebb]

you want to research setting up a medical savings account - Google that term

Good Luck!

[WI wide body]

Originally Posted by peppy

I was adding up all of our medical expenses tonight, and it is going to be tight for us to deduct our expenses.
My wife and I do not itemize our deductions, but we can take medical expense if they exceed 7.5% of our AGI.
Most of our expenses have been from March-June 2007. I thought the Hospital had sent all of the bills, they had sent us money back saying that we had over paid.
Today we get a bill for $1100. Shirt! Can we roll everything into 2008 and take the deductions then or are we just screwed out of the $1100?
We drove over 11K miles and only get .20 a mile and 50% of meals, what a load of crap.


Sorry for the rant.

All advise is welcome.

If you file the long form you can deduct all qualified medical expenses that exceed 7.5 % of your adjusted gross income.

You can only deduct the expenses for the year in which you actually pay them.

What I would do is pay that bill in 2008 along with any and all other medical expenses to get maximum bang for this year. Some places even let you pre-pay medical expenses and back when I had 5 kids at home I would often do exactly that...and then tell/ask them to allow me to pay nothing the next year. Basically paid all our med bills on a 2 year lapse. I'm certainly not a tax expert but it worked for me!

Good luck.

[peppy]

Thanks for all the info.

I think our AGI will be to high to take any real deductions.