About Me

medical bills and taxes - can you deduct them?

Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.

Tags

medical bills and taxes - can you deduct them?

Posts

Why Freelancers Need A Certified Professional Accountant
When you're a freelancer, there's no way around it: You need an accountant. A certified professional accountant (CPA) can help you with a variety of tax and business issues. Here are some of the most common reasons that freelancers need an accountant: An accountant understands the ins and outs of business deductions for freelancers. As a freelancer, you can deduct almost anything related to your business — from travel and entertainment expenses to office supplies and employee benefits — from your taxable income.

Want To Run A Thriving Business? 3 Reasons Hiring A Chartered Accountant Is A Must
Every business owner should work closely with an accountant for their business to grow. Unfortunately, most people, mainly those running small businesses, don't seek the services of an accountant. They like doing everything alone, thinking it's a cost-effective approach, but it's not. As a business owner, you need to keep an eye on all your financial books to know if your business is doing well. But since you don't have the accounting skills to do it, you should seek help from a reputable accountant because they know how financial books and records should be handled.

5 Things To Know About Income Taxes When You Lose A Child
The loss of a newborn baby is a terrible tragedy for any parent. And sadly, it also comes with practical challenges that the same parent or parents must face. One of these is its impact on your income taxes. Here's what parents should know about completing their tax forms after losing a child to death.  1. You May Claim the Child  Your child was a member of your family and household, and the IRS treats them as such.

5 Reasons To Seek Professional Income Tax Return Preparation Service
If you're like most people, tax season is a stressful time. Filing your taxes can be complicated and time-consuming, and making mistakes that could cost you money is easy. One way to reduce the stress of tax season is to hire a professional tax return preparer. A professional can help you maximize your deductions and ensure that your return is filed correctly. Here are five reasons to seek professional tax return preparation services.

3 Signs You Need To Outsource Bookkeeping Services
Are you one of those business owners who dread outsourcing business services? Or maybe you prefer doing everything yourself because of a limited business budget? Whatever the case, it is easy to think you can effectively handle your bookkeeping house or have an in-house bookkeeping team to take on the tasks. While this may look good initially, it may bring inconveniences in the long run. Here are the top four tell-tale signs you need to outsource bookkeeping services.

3 Ways Tax Planning Will Prevent You From Spending Sleepless Nights
Most business owners have a lot of tasks on their hands to manage. You need to ensure your employees' salaries are paid on time, your brand is marketed correctly, your customers are well attended to, and all your business operations run smoothly. Handling these issues can cause you stress, especially if you add tax preparation on top of them. If you want lighten your load, it's advisable to outsource your taxes to professionals.

3 Ways That An Accountant Can Add Value To Your Business
Most small business owners start looking for an accountant when the tax season approaches. Their rationalization is that they do not need to hire the services of someone that will charge them money during the rest of the seasons. However, some expenses are necessary for the growth of your small or medium-scale enterprise. An accountant will help your business expand and remain aligned with the law during the process. Here are three ways that hiring these professionals adds value to your business.

Why Hiring A Company For Their Tax Services Is A Good Move
Even if you have always completed your yearly taxes on your own, you might want to start considering doing something different next time. Instead of giving yourself yet another task to complete when you are already so busy, you will want to hire an accountant or tax prep professional in order to make use of the tax services that they provide. In order to gauge just how useful such services can be, you will want to look over the following points:

5 Ways To Improve Your Small Business Bookkeeping Practices
As a small business owner, it is important to keep your books in order. Keeping your financial house in order is necessary for your business to succeed. 1. Keep Things Separate One of the smartest things you can do as a small business owner is to keep your business and personal expenses separate. You are going to want to have separate accounts so that yours don't mix at all. This will help you keep better track of your business expenses and income.

Ways Payroll Services Benefit Your Small Business
Did you know that businesses that realize exponential revenue growth outsource payroll services? Indeed, if you want to boost your turnover, you need more time to drive sales and less time processing payroll tax and end-of-year tax statements. If you've just launched your business, you must delegate payroll management to the professionals and focus on revenue growth strategies. Payroll services present a myriad of benefits for your rising company. With automated payroll services, you can track wages, paid time off, and tax withholdings accurately.

4 Important Payroll Tips All Small Businesses Should Know
As your business expands and you can hire employees, you must also ensure that your employees are properly paid if you want to have satisfied employees. You need a good payroll system in place so that you can ensure you don't end up facing IRS penalties. #1: Decide Between Hourly and Salary First, you need to decide if you want to be paid hourly or salary. Having your employees on a salary can be easier to manage, as you know what your employees will be paid each month.

Get a Job as a Bookkeeper After Completing Online Training
Are you looking to move into another industry? Have you always wanted to get started in finance or accounting but haven't had the time to go to a traditional university to get a four-year degree? It may be possible to get your foot in the door for an accounting business by proving you know how to handle basic bookkeeping tasks. Accountants and all other kinds of businesses often need someone to handle the basics of the balance sheet so that the lead accountant or store manager can focus on other tasks.

5 Parts Of An Estate Plan
All adults should engage in estate planning. Estate planning allows you to determine what happens to your assets when you die; without an estate plan established, the state will determine what happens to the things you have spent your life accumulating. Estate planning is for everyone, not just the wealthy. Choose an Executor Your estate plan doesn't do any good if there is no one to see it through. An executor is someone who you choose to make sure your wishes are carried out.

Guidelines To Consider When Choosing Accounting Service Professionals
Once you start a business, it's crucial to get the right team of professionals to help you with different tasks. One of the essential functions you cannot overlook is accounting. While you might handle the simple tasks, you'll need to work with accountants and tax agents or seek bookkeeping services. Most newly established companies hire bookkeepers before they can think about getting an accountant or tax agent. While bookkeepers will ensure your books are updated, there are complex tasks they can't handle, and that's where accountants come in.

Why You Should Go Through An Accounting Software Training Program As A Small Business Owner
If you are a small business owner who doesn't have much experience with using an accounting software program, then now might be the time to purchase some accounting software and take a training program to help you learn how to use it. These are some of the reasons why it's smart to go through an accounting software training program when you own your own small business. Avoid Having to Hire an Accountant

Expecting An Inheritance? 5 Reasons You Need A Financial Consultant Now
Do you expect a sizable inheritance in the near future? No matter whether you're planning ahead, or whether the inheritance is imminent, one of your first steps — before you even have a check in hand — should be to meet with a financial consultant. Why should you do this as soon as possible? Here are a few key reasons.  1. You Need a Professional. While you aren't required to seek out professional financial assistance, it's a wise move.

The Route S Corporation Income Takes to Your Personal Taxes
S corporation shareholders know that their income taxes can be much more complex than the average wage earner. But you may not really understand how your personal taxes are affected and what steps you must take in order to file.  To help you prepare for your tax preparation meetings and have more confidence, here are the four basic steps you'll need to complete before you can hit 'send' to the IRS.

3 Reasons You Need A CPA For Your Business
Whether you own a copywriting company or a heating and air business, dealing with day-to-day tasks can be stressful. From calling clients and managing employees to creating content and invoices, it is easy to see the overwhelming nature of having your own business. Thankfully, help is available for certain parts of your business. This guide will help you learn the reasons why your business, no matter what type it is, needs a CPA.

Make Sure To Pay S-Corporation Shareholders A Reasonable Salary
S-corporations have their taxes handled in a manner that is different from other types of corporations. They do not have any federal income taxes levied on them at the corporate level. Instead, the shareholders are responsible for paying taxes. However, shareholders can run into trouble if they are also employees of the company and aren't paid a reasonable salary. Self-Employment Taxes The S-corporation files a Form 1120S. This form shows how income and deductions are allocated among all of the members of the shareholders.

Understanding The Difference Between Exempt & Non-Exempt Employees As A Small Business Owner
It is the business owner's responsibility to make sure that all your employees are properly classified and paid. As a small business owner, there are no legal department or HR department to make sure that you are doing everything right regarding payroll; it is your responsibility to be educated about all payroll related issues. What Exempt Vs. Nonexempt Refers To When people talk about exempt and non-exempt employees, they are referring to the Fair Labor Standards Act (FLSA).

Year-End Preparation Tips For Small Business Accounting Firms
As the owner of a small business, the end of the year is the time to start getting everything in order to start the next fiscal period. With the year-end rapidly approaching, there is no better time for you to start than now. The better prepared you are when the year comes to a close, the easier the new year's start will be. Here are a few tips to help you get your business in order for next year.

Four Ways to Set up Your Finances in Your 20s and 30s for Success Later in Life
If you want to be wealthy in your later years, you need to get a head start right now. You need to make sure that you are making smart financial choices in your early adulthood so when you reach mid and late adulthood, you have the resources to do what you want with your life. #1 Stop Living Paycheck to Paycheck The first thing that you need to do is stop living paycheck to paycheck.

3 Accounting Tips When Working For A Ride Sharing App
When you work for a ride sharing app on a regular basis and bring in part or all of your monthly income from ride sharing work, you need to set up some bookkeeping for your business. When you work for a ride sharing app, you are running your own business, and you need to keep track of how you are doing with your business and you need to keep track of expenses so you can properly file your taxes.

3 Accounting Tips All Freelancers Should Know
Freelancing offers many benefits. From working your own schedule that offers flexibility for you and your family to realizing a life-long career goal, the different benefits are easy to see. However, freelancing can pose some issues without proper understanding on how to plan and budget. If you are part of the 35 percent of workers in the United States who are considered freelancers, learning a few tips to help with your accounting will be imperative to your business's success.

3 Payroll Mistakes New Business Owners Tend To Make
As a new business owner, there are numerous tasks that you are going to have to take on. One of these is payroll processing. Upfront, this seems like an easy and straightforward business task. However, there are a number of mistakes that you could make, especially if you aren't an accounting professional. Plus, when you throw in the fact that you are busy running your business, you could make a critical error and lead to financial woes and damage your reputation in the process.

Five Things Small Business Owners Always Forget to Include in Their Cash Projections
Whether you're trying to grow or simply trying to remain sustainable, your company's cash projections are the key to your financial future. Through cash projections, you can determine whether you have enough money to expand and whether you might encounter a shortfall. Cash projections are essential to the process of securing loans and finding investors -- and they are important for your future business analysis as well.  1. Maintenance and Repair Costs

Creating A Better Timekeeping System For Payroll
Payroll is all about timekeeping. When timekeeping is done inaccurately or turned in late, it's very difficult for the payroll to be released -- and that can lead to a waste of administrative time and unhappy employees. Creating a better timekeeping system is essential for keeping the payroll on time and avoiding employment-related issues. Enforce Timely Entries If your company has billable hours, it can become easy for employees to fall behind in their timekeeping.

4 Ways You Can Avoid An Audit This Tax Season
It feels as if tax season is always just around the corner. One of the biggest fears during tax season is that of the audit. Nobody wants to have their finances scrutinized, especially if it means they could end up paying more money. These tips will help you avoid an audit next year. 1. Keep close notes about side income. Remember that you are required to note more than your salary when you pay your taxes.

You Need To Preserve Financial Documents: Here's How To Keep Them Secure
In order to engage in adequate bookkeeping, you must keep the appropriate financial documents with you. However, with all of these documents lying around, there is a greater risk that some of these documents might be stolen or might end up in the wrong hands. In order to prevent this, you will need to know how to properly store and secure your financial documents. Digitize Essential Files One of the best ways to store and preserve financial documents is to have them digitized.

Two Reasons Why Your Small Business Needs A Bookkeeper
If you're the owner of a small business that has relatively few employees, you may not see a reason why you should hire a bookkeeper. After all, you may reason that you're able to save money by taking care of the bookkeeping responsibilities on your own. However, you could find that the benefits of having a bookkeeper far outnumber any financial investment that you make when working with one. Use this information to learn two reasons why your small business should request the services of a bookkeeper as soon as possible.

Retiring From Filing Taxes -- When And How?
Retiring brings with it newfound freedom from many things people are used to from a lifetime of working. For many retirees, this includes freedom from filing taxes each spring. But, how can you know if and when you can stop filing taxes? And are there reasons to continue to do so nonetheless? Here are the answers to 3 burning questions about filing as a retiree. Are You Required to File Taxes?

Four Things You Need To Know About Annuities
If you're looking for additional retirement investing opportunities and you have a large chunk of cash that you can invest all at once, an annuity might be the product you're looking for. Give that money to an insurance company and get checks every month in return; sounds nice, doesn't it? Depending on the type of annuity you choose, you could be adding a stable source of income to your life -- or you could be tying up money and getting very little in return.

Three Reasons To Outsource Your Payroll
Business owners have a ton of tasks on their plates. They are responsible for everything from making sure there is enough inventory to employing the right people. Many of these tasks can be outsourced or delegated to ensure the business owner does not get too overwhelmed. Payroll is a large task that all businesses have to deal with when they hire employees. It can be very confusing for those who are inexperienced in payroll processes.

Portfolio Diversification: Fixed Income Investments And Other Methods To Strengthen Your Investment Strategy
If there is one piece of advice most commonly offered by financial planners, it is to diversify your portfolio. A strong portfolio is one that includes a healthy mix of traditional investments as well as fixed income investments, passive income streams, and investments in a company or project you are passionate about. Build Your Portfolio over Time One method of diversification to consider is investing your funds over a period of time.

Becoming A Landlord? Don't Miss These 6 Tax Deductions
Becoming a landlord is an excellent way to invest in your future and create a separate stream of income. But whether you're simply renting out your old home or you buy a building full of units, it's vital to make sure you take all the tax deductions you can so you don't spend all your hard-earned money on taxes. But first-time landlords often do not know what deductions are available and how to claim them.

How To Build Your Net Worth Through Passive Income
For anyone who is new to investing or is looking for ways to increase net worth, it is quite important to understand some of the basics of investing in order to build wealth. There is a lot involved with investing, and it can be confusing deciding what type of investments to choose. Do you want to remain traditional with stocks and mutual funds, or do you want to be "radical" and go with forms of passive income such as investing in films?

Planning A House Flip? Here's How It Affects Your Taxes
Like many new business ventures, the process of buying, renovating and selling a house for profit -- so-called "flipping" a home -- is both exciting and fraught with potential pitfalls. If you're looking to get into the flipping business, it's important to understand the taxes involved so that you ensure your best profit. Here is a quick primer on home flipping tax treatment.  Business or Investment There are two major questions that determine how your profit from home flipping is taxed.

Ready To Start A Business? 3 Professionals You Need First
If you are ready to start a business but you aren't sure where to begin, there are three professionals you want to meet with and hire before you open your doors for business. You want to make sure that you have everything in line legally and financially, and you need to be protected with proper insurance. Here are a few professionals you want to interview and hire when you are ready to be a business owner.

3 Signs Your Small Business Is Ready To Hire An Accountant
If you're the owner of a small business and have been wearing all of the hats involved in running said business, you may be reluctant to give up control to an outside individual. There comes a time, however, when your business could benefit from the hiring of an accountant. Below are three signs that your business needs an accountant and how that accountant can help you. 1. You're Spending More Time "

3 Ways To Make Your Accountant's Life Easier
When you are trying to manage your small business, one of the things that you should do is make sure that you hire an accountant to handle your finances. Doing that means that you have one less thing to worry about. There are some easy things that you can do in order to make your accountant's job easier.  Keep Track of Your Receipts Keeping track of your receipts doesn't mean just tossing them in a box and letting them sit there.