If your income is high, it’s unlikely you can deduct medical expenses. Reason: These expenses are deductible only to the extent they exceed 7.5% of your AGI.
Strategy: Figure out whether your best shot at a deduction is this year or next year. Then schedule nonemergency medical and dental visits accordingly.
Example: If you’re already over the 7.5% mark for 2008—or close to it—arrange to have your family’s physicals and dental cleanings done before Jan. 1. On the other hand, if there’s no way you’ll clear the 7.5%-of-AGI mark in 2008, you may as well postpone the visits past Dec. 31. This increases your chances for a medical deduction in 2009.
Tip: Add the medical expenses paid on behalf of a relative to your total if you provide more than half of his or her annual support.
- Small Business Tax Deduction Strategies No matches