TaxGuyCarl...question...or two...

[mjr]

Got a couple of questions.

With my medical procedure coming up, as I've noted in another thread, my wife and I started wondering about deductions for our taxes next year. We're not expecting a huge windfall, just wondering mostly.

Can you clarify the medical deduction for me? As best I understand it, that only applies to any medical expenses above and beyond 10% of my current income. Is that correct? Or is it up to 10% of my income? I do have health insurance through my employer, but I'm mainly curious about this, because I'm quite sure I'll meet my Out of Pocket relatively quickly. And what about hotel stays? The surgery is going to happen about 30 miles or so from where we live. My wife told me that there may be some sort of deduction for that.

Also, she got me wondering about write-offs as it pertains to my job. So if I buy a book for personal use (i.e. to learn a new technology or skill set), but it relates to my job, am I able to take a deduction for that? I'm not sure I am.

[taxguykarl]

As best I understand it, that only applies to any medical expenses above and beyond 10% of my current income. Is that correct?

Correct the amount that is over 10% of your income.

Example 1: you and your spouse pull down $80k and you have $35k in out-of-pocket medical expenses (yes, I have seen a couple rack up that figure); then the deductible amount would be $27K
$35k (the figure for Schedule A, Line 1 BTW) - $80K (the amount on Schedule A, Lines 2 and 25) X 10%
$35K -$8K=$27k

Example 2: you and your spouse pull down $80k and you have $5k in out-of-pocket medical expenses. There is no deduction as 10% of your income is greater.

And what about hotel stays? The surgery is going to happen about 30 miles or so from where we live. My wife told me that there may be some sort of deduction for that.

She's right. Lodging up to $50 per night per person. See also Publication 502, pages 10-11.

Also, she got me wondering about write-offs as it pertains to my job. So if I buy a book for personal use (i.e. to learn a new technology or skill set), but it relates to my job, am I able to take a deduction for that? I'm not sure I am.

Yes, as it is to help you get ahead on your job. That can go (along with other work expenses) on Line 21, Schedule A. See also Publication 529.
Yes you may PM me for more detailed queries.

[mjr]

Thanks, man! I'll certainly do that!