Queercents

Even the cheapest medical care is expensive. Healthcare costs are getting higher and we’re not getting younger. Tracking your medical expenses can be worth the time and effort—especially if they become tax deductible.

Tax Tidbit #2:

Make sure you take the deduction for your medical expenses, if you qualify.

The IRS allows you to deduct a portion of your medical expenses. The amount that exceeds 7.5% of your adjusted gross income (AGI) can be deducted. Report the deduction on Schedule A, as an attachment to Form 1040.

1. Calculate your AGI by completing the first page of Form 1040. The figure you have at the bottom of the page is your AGI. Simply stated, It is your income less certain allowable deductions.

2. Multiply your AGI by 0.075 to calculate 7.5%. For example, if your AGi is $60,000 your medical expenses will need to be more than $4,500 to take this deduction.

3. Get out those receipts and tally your medical expenses. If they are greater than your 7.5% calculation, include them! To continue the example above, if your medical expenses were $6,000 you could include $1,500 on your itemized deductions. Read the rest of this entry »

New years eve passed quickly and here we are at the beginning of another year. I’ve had a lot on my mind lately. I’ve been thinking about my various resolutions, remembering lessons learned last year, even paying attention to the upcoming elections. On top of this…taxes!

This time last year, I published a series to guide Queercents readers through tax time. To revamp the series for 2008 the format will be Tax Tidbits! Here’s a sneak preview of weeks to come:

Tax Tidbit #1:

Be careful in your correspondence with the IRS. Navigating a reply to an IRS notice can be tricky.

April 15th passed and my friends’ father had not paid his taxes. October 15th passed and he still had not paid his taxes. Not too long after, the IRS sent a request for his tax return. He, being the polite gentleman he is, responded with a simple letter. It stated he was not paying his taxes “as a conscious objector to this illegal war in Iraq.”

Care to guess what happened next? Read the rest of this entry »