Preventing Medical Tax Mistakes Could Seriously Save Money

Tuesday, April 14th 2015, 11:00 pm
By: Craig Day

Wednesday is the last day to get your tax return in the mail.

When you combine the confusion of the healthcare system with the often even harder to understand U.S. tax code, it's no wonder many people overlook medical deductions you can take on your taxes.

Here are some things to watch out for that might help you Seriously Save Money.

The group PicnicHealth, a service that helps people organize all of their medical records in an archive they can easily and quickly make available to all doctors they use, came up with the top four costliest mistakes people make with medical expenses.

The first is not having a paper trail.

They say you can deduct medical expenses that exceed ten percent of your adjusted gross income, but you have to keep clear records that back up each expense, including easily forgotten things like receipts for transportation to and from medical appointments.

Number two is forgetting deductions.

Ten percent of your gross income seems so high, many people don't even try; but many common treatments and supplies can be included.

The third costliest mistake, according to PicnicHealth, is not timing your surgeries.

If you or your dependents have multiple big-ticket medical expenses coming up, schedule them in the same calendar year so that you have an easier time meeting your ten percent requirement.

Scheduling properly can also help you meet your insurance deductible, which resets annually.

And finally, the fourth costliest mistake is not using it and losing it.

Flexible spending accounts let you set aside pre-tax dollars for medical expenses, but other than a small portion, if you don't use it during the calendar year you lose it.

Flexible spending accounts also lower your overall taxable income, which means it helps you save on taxes.