Medical bills/Dental Bills? Are the tax deductible?
In 2004, I was involved in a bad car wreck which left me unable to work. I was awarded a settlement. A settlement which included money for me to pay my medical bills which I incurred because of this accident. The bills totalled over 0,000. Since I payed these out of my pocket, is this amount tax deductible?
Dental Bills payed out of my pocket. Are they tax deductible? I really need to know.
Attention "Just Me", it seems your outvoted, and for your information..The settlement was for my income, and my bills and for anyone else that helped me out during that very traumatic time of my life. I’m not able to work anymore.
Also, your wrong about the "lost wage compensation" being taxable. Before we even settled the case, I had 5, I said 5 prominent accountants from Columbus, Ohio come in and tell me their view on how I should go about having the settlement divided up. Lost wages were talked about. I was told that "absolutely" no part of my settlement was taxable. So your information is flawed. I wouldn’t have replied to "your" comment, but the CAPITAL LETTERS set me off.
Confidence is one thing, but confidence without evidence isn’t worth the time you took to type it.
As for the rest of you all, you really are all telling me exactly what I had been told. I had a few people that told me otherwise. You all are along with the majority. I wish I could pick all of you.
Tagged with: accountants • bad car • capital letters • car wreck • columbus ohio • confidence • Dental Bills • medical bills • money • time of my life • traumatic time • wages
Filed under: Dental Bills
NO YOU CANNOT - If the settlement money paid for the doctor bills you did not pay for them yourself and cannot deduct them. That would be the same thing if people deducted medical bills that was paid for by their insurance company
If you had to claim the settlement money as income then you could claim them but since the settlement money for medical bills is tax free you cannot deduct them.
Any part of your settlement that was for lost wages is taxable.
its only tax deductible if:
1. only with the year you paid for it… if you paid for it in 2007, then its deductible
2. if it is the case, You may deduct only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income.
3. both medical and dental are added up as far as your total
only the amount over 7.5% of your gross income is deductible
Medical and dental expenses are only deductible if you itemize, and only the part that’s over 7.5% of your income can be deducted. If you don’t owe any income tax though it won’t give you any tax benefit.
all medical bill are tax deductable, but your income, no matter where it came from has to be a certain amount before you can claim medical bills.. also if your settlement paid your medical bills directly, then you cannot claim them, but if the settlement was given directly to you, then you can claim them..