In this Dr. Friday Tax Tips – One Minute Moment, Dr. Friday addresses the complexities of maximizing medical deductions on tax returns. She outlines the initial hurdle of surpassing 7.5% of adjusted gross income before itemizing deductions, a step made more challenging with today’s higher standard deductions. The focus shifts to an often-overlooked opportunity for seniors—deducting nursing home or care facility expenses as medical deductions. Dr. Friday emphasizes how significant portions of these costs can qualify as medical expenses, potentially reducing tax liabilities for seniors. This insightful tip highlights the importance of exploring all avenues to minimize taxes, especially for seniors in care facilities.
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one minute moment.
Guys, this is a hard one. It’s not hard to do, but you have to first exceed 7.5 of your adjusted gross income. Then once you’ve done that, you still have to itemize. And nowadays with the higher itemization, it’s really hard to really use or maximize medical. But I will say there is one thing I have done or found out that many people don’t think about is really with seniors. When they’re ending up in nursing homes or care facilities, that is mostly a chunk of that is considered medical as a way of maybe taking it off on their taxes to help you reduce their tax liabilities.
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