What do I have to do to write of medical expenses and sales taxes for my tax refund?

Question

I heard I can do two things to increase my return, one is to write of my medical expenses like copays, deductibles met, Rx copays and I also heard since I live in Texas I can also write off sales taxes from groceries and such? I am a single Mom and I really want to try and figure this out. My dad plans to file my taxes for me with Turbo tax, but has not heard of these deductions before.

Answer 1

You can deduct these, but only if you itemize. If you're a single mom, you are probably filing as head of household, so would get a standard deduction of $7550, which means you get to take that much without any proof, or any receipts. Unless your itemized deductions add up to more than that, you'd take the standard deduction instead, and so the medical expenses and sales tax would be of no use to you.

For medical, you have to subtract 7.5% of your income from your total allowable medical expenses, and only get to take whatever is over that as an itemized deduction. So if you made very much money at all, your expenses might not exceed the 7.5%.

State and local taxes are deductible if you itemize. Since Texas doesn't have a state income tax, you wouldn't have much there, so you can take sales tax instead. You don't have to have receipts - there's a table by state, by income, by family size to give a number you can take without proof. If you bought a car, you can add sales tax paid on that car to the amount in the table.

The sales tax deduction might not show in the TurboTax software that you buy. The reason is that it was due to expire at the end of last year, and congress didn't vote to extend it until in December, and by then the software was already manufactured and out on the shelves. If it looks like that would help you, but doesn't show on what you buy, go to the TurboTax website to get an update to the software that will cover this.

Answer 2

You have to file a Schedule A to claim those deductions, and you have to have a lot of expense to make it worth the work. For medical, it is 7.5% of your income. Keep in mind that it is ALL out of pocket expenses. Insurance (if not provided by work or paid in pre tax dollars), doctor, dentists, eye care, medications, therapy, etc. Plus you can count your milage to all of that. It can pay to keep good records. For sales tax, it is usually figured at a percentage of you taxable income and number of exemptions claimed. Or you can keep all your receipts from the entire year and add the sales tax up. Any major vehicle purchase can tip the sales tax scale in your favor. You will use the higher of the two taxes - income tax or sales tax - on schedule A. This is on your federal taxes, not sure if you get a special deduction with Texas. Also on schedule A, you can enter donations, out of pocket work expenses, such as uniforms, union dues, tools, cell phone, etc. Anything that is required for your work that your employer does not pay for. You also can take off any city/county taxes you may have for personal property and realestate. Plus the cost of tax prep the previous year. Go to www.irs.com and look at schedule A.

Don't forget that this year you can also get a telephone tax rebate. Anyone who had a mobil or land line at any time from 2003 to 2006 is eligible for a $30 to $60 Federal long distance tax refund. And if you actually kept phone bills from March 2003 through Dec 2006, you could get more if your actual costs were higher than that.

Answer 3

Add up the receipts (you kept these, I presume) for all such expenses, and simply enter the totals on the appropriate lines of Schedule A. The instructions give tables for estimating sales tax deduction if you did not keep all receipts showing such -- which few people do. See Instructions, Form 1040, for details.

Answer 4

Use the government resource below to find form 1040 or 1040A. You are looking for a Schedule A for the 1040 or Schedule 1 for the 1040A. In order to make good use of the deductions, they must exceed your standard deduction. Also, look for the forms that pertain to Child Care Expenses.

After your Dad has a go at it, you may request an income tax preparer to review it for accuracy. Telephone to learn if they charge to review it. If they find an error, they will tell you of the error; however, regular charges will apply if they correct it for you...unless those policies have changed (over 10 years ago).

Good luck with you efforts...

Answer 5

Both sales tax and medical expenses are deducted on Schedule A as itemized deductions. This means that it won't be of any benefit to you unless your total itemized deductions are larger than your standard deduction. Also, the deduction for medical expenses are limited to the amount in excess of 7.5% of your adjusted gross income.

Answer 6

in case you itemize, you may deduct the sales tax on the automobile, otherwise no. considering the fact which you probably did no longer close on the abode till the top of Sept, there's a real solid hazard which you haven't any longer have been given adequate to itemize. in the experience that your adjusted gross earnings is over arount $13,500 for the 365 days, the scientific isn't deductible - if this is under that, you will have not have been given any reason to itemize besides - so long tale short, the scientific won't help you. no longer likely something a expert might desire to try this you may not do your self.

Answer 7

talk to you're accountant