I have been asked to post the income tax rules for medical deductions attributable to our cancer.

That would be quite an undertaking this time of year and I'm not sure how much use it would be to our posters.

What I have decided to do is to offer to answer anyone's questions concerning that topic. This way I can see what interest may be out there. If I find a lot of interest I can always post something after this year's tax season. Brian has said he might want to add a page to the main part of the OCF web site.

I will also answer any other questions related to taxation as long as you keep it to U.S. Federal income tax.

I am not a medical doctor but I am a Tax "doctor" and if I can help anyone save tax dollars, I'm sure that will come in handy.

Feel free to e me with non medical related tax questions.

My profession will require a disclaimer attached to every response and of course this site disclaims any responsiblity for any response I offer. Remember I am offering my services for free to help fellow posters so lets see where this goes.

O.K., here's one- Tonite we wil travel to Batesville, Ar. to spend the night in a motel, so that we can have John at Chemo at 7:30 am tomorrow and then have a place for him to rest before an early afternoon appt. with a Rad oncologist. Is our overnight stay in the hotel deductible? I am also taking my daughter, who is an RN, because I do not feel comfortable being in a motel alone with him in his present condition. Amy in the Ozarks. By the way, this is a good idea.

Amy, I have no idea about the motel, but I have been deducting mileage to and from appointments for years. If you are not doing this already, it would be a good thing to keep track of as it can really add up.

Yep, 7620 miles in 2006 to chemo and Ent appts. :rolleyes: Amy

Amy of Oz,

1. Travel (local as well as non local) and Lodging essential for medical care is deductible.

2. Mileage is deductible at 18 cents per mile with no yearly limit.

3. Lodging for all 3 of you is allowed but capped at $50 per person per night with no yearly limit.

4. Food, however is not deductible.

5. Remember all medical expenses on filed on Sch A.

Sorry it took so long to get back to you. I was in court today.

David, quickly reassure us that you were in court defending a client, not in court defending yourself!

Pete,

O ye of little faith.

Yes, I was getting paid handsomely, not the other way around.

David,
When adding up the medical expenses for the year, can you include the medical expenses that were paid for out of a Health Care Spending account from work?
The kind that you decide how much you want in the account for the year, then it comes out of each paycheck and is not taxed.
Thank you.

Amy,

I get to answer your question about the hotel

YES ! Just make sure you have the receipt.

Mike G,

No,

In an employer sponsored health care plan the amount you have taken out of your pay is in pre tax dollars so when it is disbursed to a health care providor you have, in essence, already taken the deduction for it. In fact, when it is subtracted from your pay it is as if you are getting a deduction for it.

This arrangement is much better for you in this respect since you don't have to meet the filing limits of itemizing your deductions nor the 7.5% of your Adjusted Gross Income limit you must exceed if you do itemize your deductions.

Taxpayers may also be able to set up Health Savings Accounts (HSA's) and contribute tax deductible dollars each year. HSA's are a type of medical savings account set up to pay for qualified medical expenses of individual(s) covered by a High Deductible Health Plan. These contributions also do not need to meet or exceed the above limits and are therefore much more benefical to the taxpayer.