| | Joined: Sep 2006 Posts: 8,311 Senior Patient Advocate Patient Advocate (old timer, 2000 posts) | OP  Senior Patient Advocate Patient Advocate (old timer, 2000 posts)
Joined: Sep 2006 Posts: 8,311 | All good suggestions and remember ANYTHING you charge by credit card is deductible in the year you charge it, not the year you eventually pay it.
As for the canned tax software that is in stores by turkey day and is not supported with updates......again I caution you to be VERY CAREFUL as many many many forms are not even approved by the IRS until well after the filing season begins meaning that if you use one that isn't approved it may not contain the current law. This type of software also can't respond to laws passed late in the year which may retroactively apply to the current filing year. For instance just this year the Recovery and Reinvestment Act contains a new credit for "1st time home buyers" that allows a qualified purchase made in 2009 to be treated as made Dec 31, 2008 so that it can be claimed on 2008's return. The IRS has already made changes to the form and I'm waiting for my software provider to provide me with the updated form. That one feature alone would prevent you from getting your money a year early.
David
Age 58 at Dx, HPV16+ SCC, Stage IV BOT+2 nodes, non smoker, casual drinker, exercise nut, Cisplatin x 3 & concurrent IMRT x 35,(70 Gy), no surgery, no Peg, Tx at Moffitt over Aug 06. Jun 07, back to riding my bike 100 miles a wk. Now doing 12 Spin classes and 60 outdoor miles per wk. Nov 13 completed Hilly Century ride for Cancer, 104 miles, 1st Place in my age group. Apr 2014 & 15, Spun for 9 straight hrs to raise $$ for YMCA's Livestrong Program. Certified Spin Instructor Jun 2014.
| | | | | Joined: Jul 2007 Posts: 939 "Above & Beyond" Member (500+ posts) | | "Above & Beyond" Member (500+ posts)
Joined: Jul 2007 Posts: 939 | David,
I can tell you that even with accounting knowledge and my anal retentive records, I would never try to do my own taxes even with software help. I can provide good info and records but my eyes start crossing when reading the tax code and I leave it to the professionals. Its expensive but one that I am willing to pay for good oversight.
Thank you to David and all good CPA's!
Deb..caregiver to husband, age 63 at diagnosis, former smoker who quit in 1997.
DIAGNOSIS: 6/26/07 SCC right tonsil/BOT T4N0M0
TREATMENT START: 8/9/07 cisplatin/taxol X 7..IMRT twice daily X 31.5.
TREATMENT END: 10/1/07
PEG OUT: 1/08
PORT OUT: 4/09
FOLLOWUP: Now only annual exams. ALL CLEAR!
Passed away 1/7/17 RIP Bill
| | | | | Joined: Oct 2008 Posts: 251 Gold Member (200+ posts) | | Gold Member (200+ posts)
Joined: Oct 2008 Posts: 251 | [quote=davidcpa]All good suggestions and remember ANYTHING you charge by credit card is deductible in the year you charge it, not the year you eventually pay it.
[/quote]
David, I'm confused by this. Do you mean any interest you pay on your credit card account is deductible in the year it was paid, regradless of when the purchases were made? This was my understanding.
Thanks for your tax help!
Catherine
2mm tumor excised 09/23/2008 (floor of mouth)
SCC (superficially invasive, well-differentiated)
Stage 1, T1N0M0
01/2009 and 01/2010 - PET/CT clear
Four and 1/2 years - NED!
"Detection can be easy, treatment is not!"
| | | | | Joined: Sep 2006 Posts: 8,311 Senior Patient Advocate Patient Advocate (old timer, 2000 posts) | | OP Senior Patient Advocate Patient Advocate (old timer, 2000 posts)
Joined: Sep 2006 Posts: 8,311 | Well credit card interest is no longer deductible, hasn't been for many years, unless it's for a business or a business item purchased on a personal CC.
What I trying to say is that lets say you get a doctors bill in 2008 and you don't have the cash to pay it so you decide to charge it on your CC. It's still a medical deduction for 2008 even if you don't repay the CC company until years later. Same rule applies to real estate taxes, contributions, etc charged on a CC.
David
Age 58 at Dx, HPV16+ SCC, Stage IV BOT+2 nodes, non smoker, casual drinker, exercise nut, Cisplatin x 3 & concurrent IMRT x 35,(70 Gy), no surgery, no Peg, Tx at Moffitt over Aug 06. Jun 07, back to riding my bike 100 miles a wk. Now doing 12 Spin classes and 60 outdoor miles per wk. Nov 13 completed Hilly Century ride for Cancer, 104 miles, 1st Place in my age group. Apr 2014 & 15, Spun for 9 straight hrs to raise $$ for YMCA's Livestrong Program. Certified Spin Instructor Jun 2014.
| | | | | Joined: Oct 2008 Posts: 251 Gold Member (200+ posts) | | Gold Member (200+ posts)
Joined: Oct 2008 Posts: 251 | [quote=davidcpa]Well credit card interest is no longer deductible, hasn't been for many years, unless it's for a business or a business item purchased on a personal CC.
[/quote]
The above is what I thought. Since we have only one credit card and pay it off every month, it really isn't an issue for us.
I understand now that you were talking about payments of deductible items with the CC.
Thanks for the clarification!
Catherine
2mm tumor excised 09/23/2008 (floor of mouth)
SCC (superficially invasive, well-differentiated)
Stage 1, T1N0M0
01/2009 and 01/2010 - PET/CT clear
Four and 1/2 years - NED!
"Detection can be easy, treatment is not!"
| | | | | Joined: May 2002 Posts: 2,152 Patient Advocate (old timer, 2000 posts) | | Patient Advocate (old timer, 2000 posts)
Joined: May 2002 Posts: 2,152 | David,
I just noticed that this year and last year, that the amounts for my medical, dental and Long Term Insurance care are all coming out of pretax dollars like they are part of a Cafe plan. This means they cannot be used as part of the 7% for medical dedcutons and of course also reduces the amount that is eligble for Social Security.
Is my 1099 correct? When did the law change? Neat way for the government to disallow our medical deductions and also lower what we will eventually collect in Social Security. Of course it saves a few pennies on the federal tax.
Take care,
Eileen
----------------------
Aug 1997 unknown primary, Stage III
mets to 1 lymph node in neck; rt ND, 36 XRT rad
Aug 2001 tiny tumor on larynx, Stage I total laryngectomy; left ND
June 5, 2010 dx early stage breast cancer
June 9, 2011 SCC 1.5 cm hypo pharynx, 70% P-16 positive, no mets, Stage I
| | | | | Joined: Sep 2006 Posts: 8,311 Senior Patient Advocate Patient Advocate (old timer, 2000 posts) | | OP Senior Patient Advocate Patient Advocate (old timer, 2000 posts)
Joined: Sep 2006 Posts: 8,311 | Eileen,
Not sure what you are talking about? First you say the premiums were taken out of Pre Tax dollars, which is a good thing, but then you mention a 1099 so are you talking about Social Security?
David
Age 58 at Dx, HPV16+ SCC, Stage IV BOT+2 nodes, non smoker, casual drinker, exercise nut, Cisplatin x 3 & concurrent IMRT x 35,(70 Gy), no surgery, no Peg, Tx at Moffitt over Aug 06. Jun 07, back to riding my bike 100 miles a wk. Now doing 12 Spin classes and 60 outdoor miles per wk. Nov 13 completed Hilly Century ride for Cancer, 104 miles, 1st Place in my age group. Apr 2014 & 15, Spun for 9 straight hrs to raise $$ for YMCA's Livestrong Program. Certified Spin Instructor Jun 2014.
| | | | | Joined: May 2002 Posts: 2,152 Patient Advocate (old timer, 2000 posts) | | Patient Advocate (old timer, 2000 posts)
Joined: May 2002 Posts: 2,152 | David,
I still work. What I am saying is that because the medical insurance payments are coming out of pretax dollars, unless your salary is more than the maximum taxable amount for Social Security, the amount that SS will use when calculating your benefits when you go to collect will be the lower amount and thus your SS benefit will be lower. This could be significant depending on the cost of the insurance.
The medical insurance didn't use to be pretax dollars. Do you know when the changed the law? It also means I lose $7000 to $8000 in other medical deductions. Not a good thing.
Eileen
----------------------
Aug 1997 unknown primary, Stage III
mets to 1 lymph node in neck; rt ND, 36 XRT rad
Aug 2001 tiny tumor on larynx, Stage I total laryngectomy; left ND
June 5, 2010 dx early stage breast cancer
June 9, 2011 SCC 1.5 cm hypo pharynx, 70% P-16 positive, no mets, Stage I
| | | | | Joined: Sep 2006 Posts: 8,311 Senior Patient Advocate Patient Advocate (old timer, 2000 posts) | | OP Senior Patient Advocate Patient Advocate (old timer, 2000 posts)
Joined: Sep 2006 Posts: 8,311 | Eileen.
There hasn't been a change in any tax laws that universally affect employees insurance payments. I'm still not sure what your question is though especially when you say you are paying for your insurance in pre tax dollars, which is good, but then you say you are loosing 7 to 8 thousand dollars in medical deductions? If you want you may call me at 727-322-5669. Maybe you can make my thick head understand what you are trying to ask me?
David
Age 58 at Dx, HPV16+ SCC, Stage IV BOT+2 nodes, non smoker, casual drinker, exercise nut, Cisplatin x 3 & concurrent IMRT x 35,(70 Gy), no surgery, no Peg, Tx at Moffitt over Aug 06. Jun 07, back to riding my bike 100 miles a wk. Now doing 12 Spin classes and 60 outdoor miles per wk. Nov 13 completed Hilly Century ride for Cancer, 104 miles, 1st Place in my age group. Apr 2014 & 15, Spun for 9 straight hrs to raise $$ for YMCA's Livestrong Program. Certified Spin Instructor Jun 2014.
| | | | | Joined: Sep 2006 Posts: 8,311 Senior Patient Advocate Patient Advocate (old timer, 2000 posts) | | OP Senior Patient Advocate Patient Advocate (old timer, 2000 posts)
Joined: Sep 2006 Posts: 8,311 | Tax time for individuals is getting close so I'm moving this back to the top for those that may not have seen it.
David
Age 58 at Dx, HPV16+ SCC, Stage IV BOT+2 nodes, non smoker, casual drinker, exercise nut, Cisplatin x 3 & concurrent IMRT x 35,(70 Gy), no surgery, no Peg, Tx at Moffitt over Aug 06. Jun 07, back to riding my bike 100 miles a wk. Now doing 12 Spin classes and 60 outdoor miles per wk. Nov 13 completed Hilly Century ride for Cancer, 104 miles, 1st Place in my age group. Apr 2014 & 15, Spun for 9 straight hrs to raise $$ for YMCA's Livestrong Program. Certified Spin Instructor Jun 2014.
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