Tax Credit: Several Really Great Tips
Nov 4, 2009 Income Tax
If you have made a recent decision to take drastic measures and change your life in recent years then you should be commended. It is often tough for people to pay for methods to help them lose weight or stop smoking because the economy is making it tough on everyone right now. The good news is that their are a couple of tax credits available that many of us don’t even know about.
Most insurance carriers won’t even cover any of these costs theses days, even though they lead to severe health problems in the long run that cost them thousands of dollars to cover care for.
A few years ago the IRS saw this was a problem and in 2003 had laws passed giving people the right to claim credit on money they had spent out of pocket trying to lose weight or quit smoking so they could better their lives.
Keep in mind this is a tax credit and not a tax deduction. This means that you will get 100% credit on the amount spent for the program you participated in.
Your medical expenses related to being involved in a smoking cessation program can be listed on your return, but things like nicotine gum and patches may not be. If the medication doesn’t require a prescription you can not list it.
If you are claiming the credit for weight loss you can list any medical expenses resulting from the treatment of diseases there were diagnosed by a doctor as related to your weight problems. Things like heart disease, diabetes and obesity are commonly included under this category. Membership fees you paid to weight loss programs or meetings can also be listed, but fees you paid to join gyms or spas can not be. They can, however, be listed separately as related to your weight loss efforts.
In order to claim these credits you will need to fill out the Health Coverage Tax Credit form, Form 8885, and have it attached to your Form 1040. Make sure you also report it on line 67 of the Form 1040 and check the box labeled C. You can not claim this credit if you use a 1040 A or 1040EZ though so make sure you are using the right one.
You will also need to attach all of your payments proofs and invoices that you listed on the 8885 as not paid in advanced. For returns that are filed electronically you will need to attach them to Form 8543. Pay check stubs, personal checks and even bank statements showing the premiums you have paid can all be used as proof.
At website Odoux you will find out loads about tax including saving money on your taxes.
Related Articles
Tags: finance, financial, government, Income, Income Tax, IRS, money, tax, Taxation, taxes
Leave a Reply