One More Reason To Take Care Of Your Back Pain Now

 

New Rules For 2014 Medical Expense Tax Deductions

This is the perfect time to take care of that back pain procedure you have been putting off such as kyphoplasty, epidural steroid injections (ESIs), selective nerve root block (SNRB), medical brand (facet joint) denervations or sacroiliac (SI) joint injections. Taking care of any necessary medical procedures before the end of the calendar year can help you maximize your medical tax deductions.

If you plan to claim a deduction for your medical expenses, there are some new rules this year that may affect your tax return. Here are eight things you should know about the medical and dental expense deduction:

AGI threshold increase.

Starting in 2013, the amount of allowable medical expenses you must exceed before you can claim a deduction is 10 percent of your adjusted gross income. The threshold was 7.5 percent of AGI in prior years.

Temporary exception for age 65.

The AGI threshold is still 7.5 percent of your AGI if you or your spouse is age 65 or older. This exception will apply through Dec. 31, 2016.

You must itemize.

You can only claim your medical and dental expenses if you itemize deductions on your federal tax return. You can’t claim these expenses if you take the standard deduction.

Paid in 2013.

You can include only the expenses you paid in 2013. If you paid by check, the day you mailed or delivered the check is usually considered the date of payment.

Costs to include.

You can include most medical or dental costs that you paid for yourself, your spouse and your dependents. Some exceptions and special rules apply. Any costs reimbursed by insurance or other sources don’t qualify for a deduction.

Expenses that qualify.

You can include the costs of diagnosing, treating, easing or preventing disease. The cost of insurance premiums that you pay for policies that cover medical care qualifies, as does the cost of some long-term care insurance. The cost of prescription drugs and insulin also qualify. For more examples of costs you can deduct, see IRS Publication 502, Medical and Dental Expenses.

Travel costs count.

You may be able to claim the cost of travel for medical care. This includes costs such as public transportation, ambulance service, tolls and parking fees. If you use your car, you can deduct either the actual costs or the standard mileage rate for medical travel. The rate is 24 cents per mile for 2013.

No double benefit.

You can’t claim a tax deduction for medical and dental expenses you paid with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free.

Medical facilities typically experience a heavy demand for procedures towards the end of the year as patients try to maximize their benefits, so the sooner you schedule your appointment, the better. Waiting until the last minute could cause you to miss the opportunity to see your doctor before the year ends.

For more information visit: IRS Tax Tip 2014-21, February 26, 2014

You May Be Able To Treat Your Fibroids For Little-Out-Of-Pocket Cost

 

The leaves are turning. There’s a chill in the air. The end of the year is quickly approaching. In all the holiday frenzy make time to take care of yourself. Now is the time to make sure you’re getting the maximum benefit from your health insurance plan.

If you’ve been putting off a procedure – especially if you’ve met your annual deductible or you’re close to it or if you have funds remaining in your Flexible Spending Account – now is the time.

The fact that your procedure may be of little or no cost to you could be just the motivation you need to take care of those nagging aches and pains.

DEDUCTIBLES AND MAXIMUM OUT-OF-POCKET EXPENSES

Most health insurance policies calculate deductibles and maximum out-of-pocket expenses based on a calendar year. All copays, deductibles and out-of-pocket expenses are reset on the first of January. Any medical expenses you acquire during that calendar year will be applied towards your deductible and must be paid out-of-pocket until your deductible is met. At this point, insurance begins to pay for services, which may be covered at 100 percent or may require you to pay coinsurance (a percentage of your claim expense).

If you have already met your annual deductible, and you’ve been wanting to treat your fibroids, now is the time. Uterine Fibroid Embolization (UFE) is a non-surgical, minimally invasive treatment performed by an Interventional Radiologist that shrinks the fibroids to provide relief. UFE is 90 percent effective in reducing symptoms caused by fibroids.

Coverage of procedures will vary by insurance company, but this is still a good time to take action.

FLEXIBLE SPENDING ACCOUNTS

Another factor to consider is your flexible-spending account (FSA). These pre-tax contributions can be used to pay for eligible medical expenses, but they expire at the end of your benefit period and must be forfeited.

Taking care of any necessary medical procedures before the end of the calendar year can help you apply your unused FSA funds before they expire. Medical facilities typically experience a heavy demand for procedures towards the end of the year as patients try to maximize their benefits, so the sooner you schedule your appointment, the better. Waiting until the last minute could cause you to miss the opportunity to see your doctor before the year ends.