Tax Credit: Several Truly Great Tips

For those that decided to make some life changes you probably quickly discovered the cost can be hard to manage in these difficult times. What you probably didn’t know is that their is a tax credits for those that have used weight loss programs or smoking cessation to better their health.

A lot of insurance providers won’t cover these costs anymore which really doesn’t make sense given the fact that long term both of these problems can create expensive health care issues that will cost these companies a lot more in the end.

The IRS, of all people, quickly realized this was an issue and in 2003 they worked to pass laws so that people would be able to claim a tax credit for money they had paid to participate in these types of programs.

What you must make sure you remember is that this is a credit and not a tax deduction. This basically means that you get to 100% credit for the claimable amount you spent to participate.

Your medical expenses related to a smoking cessation program can also be included. Everything except aids that didn’t require a prescription, like nicotine gum and patches, can be included on your return.

For weight loss, you can claim the medical expenses incurred for disease treatment that has been diagnosed by your doctor as related to your weight. Things like obesity, diabetes and heart disease are just a few that fall under this category. You can also include membership fees for weight reduction programs and meetings, but you may not include the membership fees for things like gyms and health clubs. These can be counted as separate fees related to your weight loss activities, but never as medical expenses.

If you want to claim this credit on your next tax return you will need to fill out Form 8885 and attach it to your Form 1040. You can not use 1040A or 1040EZ for this. On your 1040 you will need to report your intent to claim this credit on line 67 as well as check the box in that area labeled C.

You also need to have attached, all of your proofs of payment that you included on the Form 8885 as things you were not paid in advance for. If you are electronically filing your return you will need to attach that documentation to Form 8543. Pay stubs, bank checks and even bank statements showing your premiums being automatically deducted can be used as proofs of payment.

At Oduox you will learn all kinds of tax information that will truly help you get your finances in order.