Taxes in Hindsight
Today is day 2 of trying to deal with 2007 taxes. (We filed an extension and have until October 15 to file.) Luckily, I don’t have to do all the nitty-gritty shit myself. I have Brilliant CPA, who does all that for me. I don’t have to figure out IRS instructions, forms, jargon. I just have to make sure Brilliant CPA gets all the info she needs to do her magic.
I thought I was done yesterday. But then I realized, Wait! Wasn’t 2007 that fucked-up year when I got so deathly sick? Wasn’t that the year we (cheerfully) bled money to pay for medical treatments, drugs, hospitalizations that ultimately made it all better? Wasn’t that the year of well-baby checkups galore and expensive immunizations? YEP. That was 2007.
So, now I’m trying to figure out if we paid enough out of pocket to be able to deduct some of it. Brilliant CPA says,
"You can itemize medical deductions if the expenses total in excess of 7% of your Adjusted Gross Income. For example, if your AGI is $XX,000, if your medical expenses exceed $Y,Y00, then you can deduct the amount over $Y,Y00. Medical expenses include your co-pays, dental, vision, prescription drugs, medical insurance, etc."
(Brilliant CPA speaks in green, the color of money.)
Where are all those receipts? Those bills? Well, it looks like I have all the bills. But probably not all the drug receipts and stuff like that. We’ve never before spent this kind of dough out of pocket, so I don’t usually keep that little stuff.
Damn. Maybe someday I’ll have all this shit figured out. Sometimes being a grown-up is hard.
September 11, 2008 at 12:53 pm
I love how your CPA speaks in green! Might I recommend Quicken to help track all your expenses? It’s really not that painful and the time you invest into it is WELL worth it at tax time when everything is neatly categorized into tax relevant reports. It really helps me out this way.
September 15, 2008 at 1:33 am
If you paid for the purchases with plastic and/or can get copy of medical record for the period, might be able to represent prescription costs that way?
September 15, 2008 at 1:58 pm
Well, I lucked out. My pharmacy was able to provide me with a duplicate receipt listing all perscriptions we had filled there. I need to pursue one more pharmacy and see if they can do the same for me.
September 15, 2008 at 1:59 pm
I tried Quicken a few years ago. It completely defeated me partway through the setup process. Maybe I’ll try it again. Obviously it’s a good idea, just an intimidating one. Thanks for the advice. 😉