8 Things to Know about
Medical and Dental Expenses and Your Taxes!
you, your spouse or dependents had significant medical or
dental costs in 2011, you may be able to deduct those
expenses when you file your tax return. Here are eight things
the IRS wants you to know about medical and dental expenses
and other benefits.
1. You must itemize You
deduct qualifying medical and dental expenses if you itemize
on Form 1040, Schedule A.
2. Deduction is limited
You can deduct total medical care expenses that exceed 7.5
percent of your adjusted gross income for the year. You figure
this on Form 1040, Schedule A.
3. Expenses must have been
paid in 2011 You can include the medical and dental
expenses you paid during the year, regardless of when the
services were provided. You’ll need to have good receipts or
records to substantiate your expenses.
2012 REFERRAL PROGRAM for
Current SMEED CPA Tax & Accounting Clients:
For the 2012 Tax Season, as always we
would welcome any REFERRALS of friends, family,
co-workers (even strangers) you send to us. To
make it worth your while we have provided some
incentives for to send us as many people as possible.
Here's how it will work:
If you send us at least 4 Referral
(new) clients who bill at least $200 with us, you will
receive an X-BOX.
If you send us 5 or 6 Referral (new)
clients who bill at least $200 with us, you will
receive a 32-inch LED Television.
If you send us 7 or more Referral (new)
clients who bill at least $200 with us, you will
receive an Apple I-Pad!
If you have any questions feel free to
call the office at
925-634-2344. Thank you in advance for your help!
4. You can’t deduct reimbursed expenses Your total
medical expenses for the year must be reduced by any
reimbursement. Normally, it makes no difference if you receive
the reimbursement or if it is paid directly to the doctor or
5. Whose expenses qualify You may include qualified
medical expenses you pay for yourself, your spouse and your
dependents. Some exceptions and special rules apply to
divorced or separated parents, taxpayers with a multiple
support agreement or those with a qualifying relative who is
not your child.
6. Types of expenses that qualify You can deduct
expenses primarily paid for the diagnosis, cure, mitigation,
treatment or prevention of disease, or treatment affecting any
structure or function of the body. For drugs, you can only
deduct prescription medication and insulin. You can also
include premiums for medical, dental and some long-term care
insurance in your expenses. Starting in 2011, you can also
include lactation supplies.
7. Transportation costs may qualify You may deduct
transportation costs primarily for and essential to medical
care that qualify as medical expenses. You can deduct the
actual fare for a taxi, bus, train, plane or ambulance as well
as tolls and parking fees. If you use your car for medical
transportation, you can deduct actual out-of-pocket expenses
such as gas and oil, or you can deduct the standard mileage
rate for medical expenses, which is 19 cents per mile from
January 1 - June 30 and 23.5 cents from July 1 - December 31,
8. Tax-favored saving for medical expenses
Distributions from Health Savings Accounts and withdrawals
from Flexible Spending Arrangements may be tax free if used to
pay qualified medical expenses including prescription
medication and insulin. (Taken from IRS Tax Tip
2012-30, February 14, 2011).
Eye On Money:
case you missed it last month, here
is the March & April 2012 issue of EYE ON MONEY.
The magazine is 20 pages and has
several money & financial articles I think you will enjoy
You can download it as a PDF (click
here) and read or print it out.
Some of the article topics
- 5 Mistakes to Avoid with Your
- Will The Person You Intend
Inherit Your Retirement Account?
- How to Avoid Defaulting on
- Business Retirement Plans: A
Smart Choice For You And Your Business
After you read it if you have any questions, feel free to call
|Remember even though it's tax season
and we are very busy, if you have a need or question,
call the office and ask us. We are here to serve
you! Michael Uadiale @ SMEED
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using the Internet and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
click here to go to our Google Listing for SMEED CPA.
Scroll down to the Review area.
It may say: Been here?
Rate and review
You will click on the Rate and
review link and then log into Google, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA
Managing Partner, SMEED CPA,