Deducting Medical And Dental Expenses

medical and dental expensesTax season is not usually the favorite time of any person’s year. If you itemize deductions, it may even be a bit more overwhelming for you than for others. But it can benefit you. If you spent a lot in medical and dental expenses (more specifically, if your medical and dental expenses exceeded 10% of your adjusted gross income for the year) you can deduct them. Here are some tips for you to claim a federal income tax deduction for medical and dental expenses.

As mentioned above, the total of your qualified medical and dental expenses must exceed 10% of your AGI to claim a deduction. The exception is if you are married and at least one spouse is 65 or older, the expenses can exceed 7.5%.

Also, you must itemize your deductions; you cannot use the standard deduction. And you must have paid the medical expenses during the same year of tax return you are filing. If you were reimbursed by another source for any of the expenses, you may not deduct those amounts. But you may be able to claim the cost of travel for medical care. To find a list of qualified expenses, visit the IRS website.

Lastly, if you participate in a health savings account or flexible spending account that you used to pay for medical expenses, you cannot claim these as a tax deduction as these funds are already withdrawn on a tax free basis.

Reasons Why You Need a Dental CPA

accountingIf you own a dental practice you know that tax season can be a little overwhelming. Rather than hiring a regular accountant to help you with your tax returns, why not hire a Dental CPA?  Here is a list of reasons, brought to you by, of why you need a Dental CPA instead of the accountant you’ve been using.

  • Your accountant doesn’t know the difference between a prophy and a root canal.
  • Your accountant doesn’t understand how your participation in insurance plans affects the percentage of adjustments to gross productions.
  • Your accountant has no clue what reasonable associate compensation models are.
  • Your accountant doesn’t know if your accounts receivable balance is normal.
  • Your accountant doesn’t know what your overhead percentages should be based on your specialty.
  • Your accountant doesn’t know how much your hygiene department productions should be relevant to their compensation.
  • Your accountant has know idea what portion of your practice should be dentist production vs. hygiene production.
  • Your accountant doesn’t provide presentations to dental associations and schools.
  • Your accountant has never heard of Dentaltown.
  • You don’t understand why vendors are saying that new Cerec is practically “free” after tax deductions.
  • You are seeing twice as many patients as last year, but your cash flow is tight.

Microsoft Word – Top 11 Reasons You Need a Dental CPA.doc – Top 11 Reasons You Need a Dental CPA.pdf.