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What amounts do I need...

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TweetyBird

Guest
My step daughter has well over $600,000.00 worth of medical bills that we have. We are responsible for the co-pays, deductibles, and out-of-pockets. What we have paid out is all of the above $2,500.00 as well as what the Insurance company deems Not-Covered-Expenses, that the proveider does not deduct, which then has to be paid by us. This is in excess of $2,000.00.

I was wondering what amounts of Medical bills that have been paid, that I can take off on my taxes, if any at all.

We are a married couple, so if I am not mistaken, correct me if I am wrong, we would of had to have paid out in medical the amount of the standard deduction?

Another question, we also pay his daughter for "College Expenses". It is paid directly to her, can we take that off as well under the Education Credit (Form # 8863)?

Thanks much in advance for more information.

TweetyBird
 


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TweetyBird

Guest
Can someone help me with this question...Please!

Thanks
 
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wowie

Guest
I will do my best as I am in a similar situation. . .

As for the medical. . . in order to claim medical dedutions you are incorrect (somewhat) in what you said. This gets confusing, so bear with me. In order to claim medical you must first be able to itemize. This means that your personal deductions exceed the standard deduction (unless you really just want to itemize). Then, your medical expenses must exceed (you might want to check this number) 2% of your adjusted gross income (usually line 40 or so on your 1040).

Things that are deductible on medical include ANY surgeries, cosmetic or medically necessary. Mileage to and from the doctor, hospital, dentist, and clinics. Any and all out of pocket expenses that you have paid. Pharmacy co pays. I believe that you can count your portion of the insurance premiums that your employer does not pay. There are various other expenses, but I don't know all of them.

Unfortunately, even though you have outrageous medical expenses it is rather hard to get enough of the deduction to make it worth itemizing. You fair better if you own a house and can deduct the mortgage interest.

As for the college thing. . . this is a sticky situation. Probably you cannot take the credit simply because the IRS will require that you give the institution information. If your husband legitimately paying for her college and not just spending money then he should get a copy of a 1098 form that his daughter will get from her college. This will give you the info that you need.

Also, for your medical expenses each state offers programs for children that can help alleviate some of those monetary burdens. It is through the Dept of health and human services. Most states call it crippled children or children with medical handicaps. My kids were both on it. Some require you to be on medicare others don't. It usually pays EVERYTHING that the insurance doesn't pay for the specific condition. Usually the condition has to be from birth or due to a disability, but it can't hurt to look into it. Also, depending on the injury or illness that your daughter has, you could always try to apply for disability for her. Also through department of health and human services. Just some ideas. Hope this helped some. Please feel free to email me if you have any other clarifications. [email protected]
 

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