Is the "overpayment" how much Im going to get back or is that how much I will have to pay? I also have a Dental Loan that I took out to pay for some dental work I had done. Does that qualify as a Medical/Dental deduction?
2007-12-02 15:54:50 · 5 answers · asked by ineeshee 3 in Business & Finance ➔ Taxes ➔ United States
overpayement is how much you will get back and yes a loan will qualify but only the amount in which you have paid back on it until the end of the year.
2007-12-02 16:00:37 · answer #1 · answered by jlthomas75844 5 · 0⤊ 3⤋
An overpayment is the equivalent of your refund amount. Eg, you sent too much money to the government (overpaid), you get the rest back.
The dental loan is not an itemizable deduction. The cost of the work when provided is the amount you use. However, unless the total for your medical expenses is more than 7.5% of your adjusted gross income (and you are able to itemize at all), it may not affect your tax bill.
(The loan is simply an agreement you made to pay back the money. Officially the dental work has been paid for--just like if you used a credit card to buy a dress. Neither the loan payments nor the interest can be deducted later on your taxes.)
2007-12-02 16:01:13 · answer #2 · answered by Anonymous · 1⤊ 0⤋
By overpayment, they mean that you have paid too much tax and will get a refund.
The dental loan itself does not qualify as a deduction. The amount of the loan that pays for the dental work DOES qualify as a deduction, if you are eligible to itemize deductions. You need to review form 1040, Schedule A... to see if you qualify.
2007-12-02 16:01:45 · answer #3 · answered by boj12345 2 · 0⤊ 0⤋
Ovedrpayment is how much was withheld over the amount of tax you actually owe, so it's what you'll get back.
Dental work paid for in 2007, even if you took a loan to pay it or paid with a credit card, qualifies as a medical expense. You can only deduct the amount that's over 7/5% of your income though, and even that only if you itemize.
2007-12-02 19:07:47 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Overpayment means "Goody"= Refund- You overpaid to the IRS & will get money back.
Underpayment means "Penalty"=Pay more money to the IRS.
Your Dental expense may be deducted only if you itemize (means, your itemized deduction is greater than your standart deduction, so it is better for you to use the itemized deduction). Also your medical expense has be more than 7.5% of your AGI (means Adjusted Gross Income). If your income is high you may not be able to deduct any of your medical expenses on Schedule A-Itemized Deduction Form.
http://www.irs.gov/taxtopics/tc502.html
2007-12-02 16:13:55 · answer #5 · answered by Q 3 · 0⤊ 0⤋