Tax Credit: A Number Of Really Great Tips
Have you recently decided to change a few things in your life only to discover it’s a really expensive decision to make right now? In these times weight loss and stop smoking programs are tough to pay for. The thing you probably didn’t know about is a little known tax credit that is available to those of us who decide to lose weight or stop smoking.
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.
Keep in mind this is a tax credit and not a tax deduction. This means that you will get 100% credit on the amount spent for the program you participated in.
Your medical expenses related to a smoking cessation program can also be included. Everything except aids that didn’t require a prescription, like nicotine gum and patches, can be included on your return.
For weight loss, you can claim the medical expenses incurred for disease treatment that has been diagnosed by your doctor as related to your weight. Things like obesity, diabetes and heart disease are just a few that fall under this category. You can also include membership fees for weight reduction programs and meetings, but you may not include the membership fees for things like gyms and health clubs. These can be counted as separate fees related to your weight loss activities, but never as medical expenses.
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.
At Oduox you will learn all sorts of tax information that will truly help you get your finances in order.
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