by: Alysha Pruitt Harvey, MAcc, EA, CTS, CTC, CTP, People Advisor

Hey there, friend! So, you know how we all have those not-so-fun expenses that pop up? Yep, I'm talking about medical expenses and healthcare costs. While it might not be our favorite topic, there's a silver lining. With the right strategies, you can maximize your deductions and keep more of your hard-earned money. Ready to dive in? Let's go!

Understanding Medical Expenses

First things first, what exactly counts as a medical expense? The IRS defines a medical expense as any cost related to the prevention or treatment of physical or mental illnesses. This encompasses a broad range, from doctor's visits and prescriptions to medical procedures and even some over-the-counter meds. So, next time you're at the pharmacy or the doctor's office, remember: these expenses might just come in handy during tax season.

Maximizing Deductions: The How-To

Alright, now that we've got the basics down, let's chat about how to make the most of these expenses. One game-changer? Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). If your employer offers these, you're in luck. By contributing pre-tax dollars to these accounts, you can cover medical expenses, reduce your taxable income, and increase your deductions. It's like a win-win-win!

However, there's a catch. To truly benefit, you've got to be diligent about record-keeping. That means holding onto receipts and invoices for all medical-related costs, no matter how minor they might seem. Trust me, when tax season rolls around, you'll be grateful for that stash of paperwork. Plus, you never know which expenses might be deductible, so it's always better to play it safe.

Now, here's a little nugget of wisdom. Some healthcare costs might be deductible even if you don't itemize your deductions. For instance, if you're rocking the self-employed life and covering your own health insurance premiums, you might be able to claim them as an above-the-line deduction. Pretty neat, right?

Seeking Expert Guidance

Navigating the maze of medical expense deductions can be tricky. But guess what? You don't have to go it alone. Consider teaming up with a tax strategist. They're like the GPS for your tax journey, guiding you through which expenses are deductible and helping you craft a strategy to maximize deductions while playing by the IRS rules.

Wrapping It Up

So, while medical expenses and healthcare costs might not be the most thrilling topic, with a little know-how and strategy, you can turn them into a golden opportunity for savings. Embrace the power of HSAs and FSAs, keep meticulous records, and maybe even bring a tax strategist into your corner. Your bank account (and let's be real, your peace of mind) will be all the better for it.

Thinking of diving deeper into this? Spark your interest and book a call with us. We're here to help you navigate the intricate world of tax deductions.

Talk to us here https://calendly.com/alyshaharvey/strategy

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