Whoo-Who! I just finished my 2011 and 2012 taxes! I had let paperwork pile up for about two years, cleared off a table and worked my way through about 20 grocery sacks of mail and receipts.
It took a while. ;D And my neck hurts from looking down. However, the message here (besides fishing for praise from my homies!) is to keep track of your medical receipts.
We haven't paid taxes for a decade since our bills are so high. To simplify your lives:
1. Pay for medical things separately from your groceries.
2. Put those receipts in a central location. I love large Tyvek mailing envelopes.
3. You can get your prescription costs total for the year from the pharmacy. But I still keep each receipt to double check.
4. You can also get a statement from your doctor's office(s) of your payments for the total year.
5. Don't forget to include your insurance premiums.
6. Don't forget to include your supplements. Have your doctor write a letter prescribing them.
7. Keep every receipt in case you get audited. I take a colored paper, write the totals on it, then staple the receipts by category to them. I use the categories of doctor/hospital expenses, prescriptions, supplements, hearing aid, etc.
8. If you have a support dog or assistive dog, their expenses are also deductible. Track them as well.
I am caught up to October 15 for this year as well!
Sharon
I tend to do this in 3 month bursts....
I have a folder on my desk, and just throw medical receipts, dr bills, etc in there.
Then I have a spreadsheet, with one page for prescriptions, one for doctors, tests and procedures, and one for premiums. Usually on a boring rainy day, about every 3 months, I just sit down and enter all the info. Only takes about an hour or so.
So by the end of the year, I have all the costs in one place, and it makes it easy to enter into the taxes.
Don't forget Medicare premiums, too!
Definitely saves me a lot on taxes, as I live on Social Security, and have had medical costs (including premiums) of between 3K and 14K for the past 3 years.
But be sure to print out the spreadsheet, and keep the actual receipts!
Sharon
Great tips Sharon. One thing I love that we purchased was a hand held receipt scanner. We didn't buy it for me, we actually bought it for DH beause he was an Officer and we had to keep up with all receipts having to do with his occupation. But it works wonderful with my medical stuff. I can scan them easily and keep copies in multiple computers and devices. It was less than a $100 to purchase.
That is a really good idea, Velcro. Those darned thermal tapes fade fast!
Sharon
wow you made me realize how much I need to go through my old papers. I have tax returns from 15 years ago lol. And utility receipts and bank statements from places I dont even live at anymore :o
Yes, Sharon, you're so right.
My Medicare Advantage plan sends me a list every month of what I've spent, and my husband, as well. But I also keep all receipts, and enter everything into a spread sheet that adds. I also remember to have a column for the tiny reimbursements we get from our dental insurance plan!
I use a tax program which always reminds me what I need to fill in, which helps me a great deal, as well. It doesn't KNOW what the information is, of course, until I enter it. So it's up to me to know what's what.
The other thing is that all of our banks statements and credit card statements are on line, and go back for at least a year or more. The information is THERE, it's a question of accessing it, organizing it, and getting it into the right parts of the tax return.
I think most of us have learned over the years that we have so much to track, with chronic conditions, that we have to be well organized.
Recently I went through my OTC supplements to reorder things that were running low, or make a special run to the big box store that has the best price. I'm talking about iron supplements, D-Mannose, very high power fish oil capsules (I take two a day), generic Aleve, Vitamin D, and on and on and on. Just keeping up with generic Benadryl and Gauifenesen (generic mucus stuff) takes managing, a baby aspirin, and the N-Acetyl Cystine I take for my Meniere's. It's amazing.
The question is: How many take the OTC stuff off their taxes? My Cardiologist says: Take Fish Oil and a baby aspirin. My Immunologist says: take Benadryl. My Internist says: take Iron.
And I take hearing aids, batteries, glasses, stuff like that off, of course. And estimate my mileage for driving to doctors appointments. It really adds up, doesn't it?
I just wish our entire system was more geared to helping people instead of making money. But then, no one put ME in charge!
Hugs, Elaine
I was told you can't claim OTC meds, even if the Doctor tells you to get them.
Oh, and I should have said even if the Doctor "tells" you to get them. My understanding is if you can actually get the Doctor write it in prescription form that you have to have them, then you can. The key word being "prescribed" in the IRS literature, which is why I'm sure Sharon said to have them write it.
It does take a written prescription. We certainly take off our OTCs. Those costs at least match the prescription costs.
Sharon