The IRS Deductions Blog

Posts Tagged ‘deductible’

Question: Can I have a dependent care FSA for child care expenses & an HSA with a HDHP health insurance plan?

I know there are specific limitations regarding medical FSA’s and such but I wasn’t sure regarding dependent care. My wife and I have a High Deductible Health Plan and HSA through her work and we are having a child soon so we are considering the dependent care FSA through his work for upcoming day care expenses and such but we don’t want to get hit on taxes or do anything that would effect the medical side. Any accountants and tax professionals with advice? Thanks!

Answer: You can have both; the FSA will not affect the HSA. Here is the IRS publication for information on both plans: http://www.irs.gov/pub/irs-pdf/p969.pdf

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Asparity Reports that 85,000 Federal Employees Made More Affordable Health Plan Choices during 2011 Federal Open Season

Asparity Decision Solutions, a leading provider of health care and employee benefits decision support and data solutions, reports that 85,000 federal employees used PlanSmartChoice during the 2011 federal open season to make more affordable health plan choices.

Flexible Spending Account and Dependent Care Assistance Program – Benefits for new employees Ch.9

Question: Margin Interest Deductible In This Situation?

I know margin interest is only deductible up to the amount of net invesment income I’ve received. Does that mean if I have $10k in short term capital gains and $10k in short term capital losses for a given year–IOW, no overall net gain–that I can’t deduct margin interest? Thanks in advance.

Answer: In your example, you would have $0.00 in net investment income. Therefore, your investment (ie margin) interest deduction would be limited to $0.00. It gets carried foward to future year though.

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Expert tips for cutting credit card debt

Being smart about credit card debt can help the average investor bank a guaranteed 18%. Read on for tips from financial experts on how to tackle debt and grow you savings.

Interest is tax deductible!

Question: how do deductibles work in health insurance?

I’m self-employed, and I’m thinking about buying health insurance, but I’m a bit confused. My main concern is with regular doctor visits, not big accidents. Can someone explain to me:

1. What do they mean by “deductible”?

2. how do deductibles work?
(I pay for every doctor visit until I reach the i.e. $ 5000 in payments, then after that I pay only $ 35 per visit? or do I pay $ 35 per visit just for being covered, and only $ 5000 when I get into a big accident or am hospitalized?)

PLEASE, I need help

Answer: Deductibles are: the amount of money that you have to pay before the insurance company will pay anything for you or help you pay (as with co-insurance).

How it works: If you get a plan that “covers” doctor visits, then normally you would have like a $35 copay every time you go to the doctor (sometimes with a limit to how many times you can go a year). Now, lets say that after you visit the doctor, the doctor finds something really wrong with you and tells you to go to the hospital or you wind up in the hospital on your own. This is where your deductible will really come into play. The $5,000 is the amount you’ll have to pay on your own for hospital visits/surgery/doctor visits. This (normally) includes the copay. But then you might have co-insurance on top of the deductible which is normally 20-30%. That means that after you meet the deductible (pay $5,000 out of your pocket), then you will have to pay 20-30% of the remaining bill out-of-pocket and the insurance covers the rest.

Sorry if it’s confusing, but every health insurance plan is different, so I don’t know what restrictions yours has.

If you’re looking for a plan that mainly focuses on doctor visits, then I would make sure that you have a plan that has a low $ amount for copays and covers prescriptions.

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Cuts made to retirement plan

The Rowlett City Council has been discussing making cuts to its employee benefits for months.

Can I Deduct Job Seeking Expenses?

Question: HMO Plan or Blue Cross Share Plan? which is better plan for my situation?

I am 30, my husband and I want to have children in the future ( maybe now or maybe after 2-3 years, no time limit), so we think I better have a plan include maternity if I get pregnant.

I am looking for Blue Cross Share Plan (PPO) and HMO Plan.
I know
1.
If I get pregnant recently, HMO Plan will be the best
but if I get pregnant next year or later, which one is better for me?

2.
If I choose “Blue Cross Share Plan”, do I need to pay any money after I meet deductible and out of pocket?

3.
Does everything can be waived if I choose ” Blue Cross Share Plan”?
I saw “waived if admitted”, does it mean only this part can be waived? or everything can be waived, for example, 30% of negotiated fee (Professional Services, Hospital Inpatient/Outpatient, Maternity, Emergency Services)

Thanks for your help~

Answer: I am assuming that this insurance is a choice with either your husbands employer or your employer? The best thing for you or your hubby to do is to talk with either the insurance agent or company that helps with insurance questions. Most employers have an agent that finds the best plans. If that isn’t possible, then call Blue Cross and talk to an agent there and ask LOTS of questions! Sounds like you are on the right track! Good luck!

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Health happenings: March 15

Send information about free or low-cost health-related events open to the public one week ahead of publication. Information can be e-mailed to jmorreale@bradenton.com. Listings are due 10 days in advance.

GA Health Insurance Facts

Question: Are reiki healings tax deductible?

Reiki is a form of spiritual practice used as a complementary therapy for the treatment of physical, emotional, and mental diseases.

Could this be included in the Deductible Medical expenses (that are over 7.5% of the AGI)?
Why won’t it meet IRS requirements? What specific IRS requirement won’t it meet?

Answer: They are not FDA aproved medical treatments

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US prepares Deductible Tax expenses

WASHINGTON (AFP) – Prostitutes, cat food, trips to Africa: There are few limits to the expenses Americans believe should be tax deductible, but given the complexity of the tax code they may be forgiven. To file taxes in the United States is to enter a Byzantine labyrinth replete with pitfalls and potholes. The system is so complex that ahead of the tax deadline this April 18, tens of millions of …

Medical and Dental Expenses Tax Deductions