Each week we'll answer the 'one of? frequently asked on the blog of Facebook, Twitter and TaxACT in "You Got It" weekly series
issue :.
Can I use dental payments as a tax write and how much would I have to pay for this make a difference?
Susie via Facebook
reply :.
In addition to other medical expenses, dental expenses can be claimed as an itemized deduction
other medical expenses include the costs of clinic visits and hospital, prescription drugs , and health insurance premiums.
There are two obstacles that you must overcome to these fees to make a difference in your statement.
First, the total expenses exceed 10% of your adjusted gross income (AGI) (or 7.5% if you or your spouse is 65 or older).
Suppose you are married filing a joint return, or spouse is 65 or older. If you have $ 5,000 of medical and dental expenses and your AGI is $ 40,000, you will be entitled to claim $ 1,000 of your medical and dental expenses as an itemized deduction. (TaxACT included the total for you.)
Second, you need to compare the total eligible medical and dental expenses as well as your other itemized deductions allowable in your standard deduction.
The amount of the standard deduction for each filing status for 2013 tax returns is as follows:
- single or married filing separately - $ 6.100
- head of household - $ 8.950
- Married filing jointly or widower qualification (ve) - $ 12.0
Generally, you'll want to claim the deduction claimed amount is high. In other words, arguing your dental expenses is most beneficial if your total itemized deductions exceed your standard deduction.
Using the previous example, let's say your $ 1,000 of eligible medical and dental expenses as well as your other itemized deductions total $ 13,000.
since $ 13,000 is more than the $ 12.0 standard deduction allowed on joint return, you will receive itemize deductions.
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