WHIZ
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WHIZ
| Wed, 03-29-2006 - 6:43am |
I saw you were trying to work out your medical deductions and wanted to know if you had considered mileage to/from the doctors, parking & any tolls. There might be other stuff you can take off but that is a few things that came to mind. That mileage adds up fast especially if you are going any distance. I think perscriptions are included as well as any copays for regular doctors visits during the year by anybody in your family.
I always feel like we have lots of dr bills but it never adds up to 7%. I think any of it should be deductible but what do I know?
Good Luck!
Loca

Loca,
Don't forget to utilize your company's medical FSA if you have regular medical bills. This will be pretax money so your stuff will be deducted even though you don't have 7%. You can even be reimbursed for mileage and lots of OTC medical stuff. You should get an opportunity to enroll during open enrollment or any time you have a life-change event (marriage, divorce, babies, job change of you or your spouse). Check with your HR dept to see if it is available at your employer.
Peg
Whiz and everyone else curious about FSA/HSA,
We don't have FSA or HSA where I work, but my mom plays that one really well. First you decide how much you will spend through the year and contribute that as X/#pay periods. It is a use it or lose it scenario and the money is pre-tax like 401K contributions are.
So here's how it might work:
You have 1 prescription you fill every month and it has a $10 copay. So you contribute $120 for that.
You need glasses (or contacts) you figure that costs you $200 for exam and glasses so add that in.
You go to the dentist in January and you pay $150 for a cleaning, if you can go again in December (11 mos.between visits) you put in $300 this year; but maybe you skip next year and go the following year Jan(13 months between visits)and Dec. you won't put dental into your FSA on off years.
You figure you see your Dr. one time a year for a check up and your co pay is $20 so add this in. You might want to add in 1 or two more visits for unexpected cold/illness.
That's it.
So your total might be $800 (est. high) for this example. Your plan year ends in December 31 and you've gotten 12 prescriptions, gotten new glasses, seen the dentist and doctor twice, you have $60 left in your HSA/FSA you must use up by midnight of 12/31...what do you do?
Refill your medicine cabinet, buy band-aids, peroxide, alcohol, asprin, etc. If you spend every penny you get reimbursed every penny and that money is tax free. Over the counter medical items are FSA/HSA eligible. Browse Walgreens.com,CVS.com or Drugstore.com and you will often see something telling you if an item is FSA/HSA eligible. If you leave the money in the account most plans you lose it or they may divide up between all participants and pay you back, but would you want to share $60 of your money with 59 co-workers?
I wish my company had this but they took a survey and because too many people didn't understand it, so there wasn't enough support to justify it.
Take Care,
Pam
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