Académique Documents
Professionnel Documents
Culture Documents
6525
www.hrp.net
With the ever-increasing cost of healthcare, you should be vigilant in looking for related tax deductions that are available to you. As we will explain below, a rule change taking effect this year makes a deduction for medical expenses harder for most taxpayers, but you may be overlooking some deductible health insurance premiums that will offset the harsher rule.
www.hrp.net
Higher Threshold for Itemized Medical Write-Offs Before this year, you could claim an itemized deduction for qualified
medical expenditures for you, your spouse, and your dependents -- to the extent those expenses exceeded 7.5 percent of your adjusted gross income (AGI).
Your AGI is the number at the bottom of page 1 of your Form 1040. It
includes all taxable income items and is reduced by certain write-offs including those for moving expenses, deductible IRA contributions, alimony payments, and student loan interest.
The 7.5 percent-of-AGI hurdle was hard enough to clear. Now, thanks to
the 2010 healthcare legislation, an even higher 10 percent-of-AGI threshold applies to most taxpayers -- effective for this year and beyond.
Key Point: For the 2012 tax year, the more-favorable 7.5 percent-of-AGI
threshold applies to taxpayers of all ages. So the higher threshold, which takes effect this year, does not affect the 2012 tax return due April 15, 2013 (or October 15 if you file for an extension).
www.hrp.net
www.hrp.net
Medicare Part A is commonly called hospital insurance coverage. Most eligible individuals are automatically covered for Part A without having to pay premiums because the Part A premiums are considered paid from Medicare taxes on your wages while you or your spouse were working. However if you did not pay Medicare taxes, you may have to pay premiums to get Part A coverage. If so, the Part A premiums for 2012 could have been as much as $451 per month per covered person (up to $5,412 for the year).
www.hrp.net
2 Medicare Part B is commonly called medical insurance coverage. Part B coverage together with Part A coverage is often called "original" Medicare. Part B mainly covers doctors and outpatient services, and most people must pay monthly premiums for this coverage. For 2012, you probably paid the standard monthly Part B premium of $99.90 ($1,199 per covered person for the year). Higher-income individuals paid more--up to a monthly maximum of $319.70 for 2012 (up to $3,836 per covered person).
Part B premiums are usually withheld from your Social Security benefits. If so, the amount withheld for the year will show up as an adjustment on Line 3 of Form SSA-1099 (Social Security Benefit Statement), which you should have received from the Social Security Administration (SSA). Part B premiums can add up to significant dollars, especially for married couples when they are being paid for both spouses.
www.hrp.net
3 Medicare Part C is for private Medicare Advantage health plan coverage, which is supplemental to government-provided Part A and Part B coverage. Premiums vary depending on the plan. If you have Part C coverage, you don't need Medigap coverage (described immediately below). 4 Medicare Part D is for private prescription drug coverage. Premiums vary depending on the plan. Higher-income folks pay an "adjustment amount" in addition to basic plan premiums. For 2012, the adjustment amount can be up to $66.40 per month (up to $797 per covered person). Adjustment amounts are withheld from your Social Security benefits and will show up as an adjustment on Line 3 of Form SSA-1099, which you should have received from the SSA.
5 Medigap Insurance is private supplemental insurance that functions as an alternative to Part C coverage. Premiums vary depending on the plan.
www.hrp.net
Premiums for Qualified Long-Term Care Insurance These premiums also count as medical expenses for itemized deduction purposes, subject to the age-based limits shown below. For each covered person, count the lesser of: Premiums paid in the applicable year or The applicable age-based limit.
www.hrp.net
The age-based limits for 2012 and 2013 are listed below.
Premiums Paid in 2013 Age as of 12/31/13
40 or under 41-50 51-60 61 to 70 Over 70 Max Amount Treated as Medical Expense $ 360 680 1,360 3,640 4,550
Age as of 12/31/12
40 or under 41-50 51-60 61 to 70 Over 70
Max Amount Treated as Medical Expense $ 350 660 1,310 3,500 4,370
www.hrp.net
www.hrp.net
E-mail : info@hrp.net
www.hrp.net