Tax Credit: Several Truly Great Tips
View PDF | Print View
by: BrendanWilkie
Total views: 48
Word Count: 429
You probably already know that almost none of the insurance providers out there will cover the cost that comes with these type of programs. They should because it would save money they will be out later down the road covering the long term health effects, but yet they won't.
The IRS recognized this problem and passed laws in 2003 to allow people to claim a tax credit on the money they have paid out of pocket for weight loss and smoking cessation programs.
This is not a tax deduction, but instead a credit, meaning you get total credit on the amount you spent to participate in activities related to these goals.
Your medical expenses related to being involved in a smoking cessation program can be listed on your return, but things like nicotine gum and patches may not be. If the medication doesn't require a prescription you can not list it.
If you are claiming a tax credit for weight loss the medical expenses you paid for the treatment of diseases related to your weight can be included. They must be diagnosed by a doctor as related however. A few examples included diabetes, heart disease and obesity. Your membership fees to take part in weight reduction programs and meetings can also be included. Things like gym memberships can not however, but you can list them as separate fees related to your weight loss if you want.
What you need to do to claim these credits is fill out a form titled Health Coverage Tax Credit Form 8885. You then need fill out line 67 of your Form 1040, check box C and attach both forms together. You can not use a 1040A or 1040EZ to file for this credit on your return so be sure you are filing out the right paperwork before you submit anything.
Additionally, you must also attach the invoices and payments proofs you included on the Form 8885 as things you did not get advanced payment for. For e-filed returns you can attach these documents to Form 8543. Proof of payment can be anything from a pay stub, check from your bank account or a bank statement showing premiums that are automatically deducted from your account.
About the Author
At Oduox you will be able to learn more in relation to taxes and it's very pivotal that you take the time to learn all about taxes otherwise you could end up out of pocket.
Rating: Not yet rated
