If you’re like many, you wince when tax season comes around because of all the complications and regulations. For example, those who itemize deductions may not know that some Medicare costs are deductible. That’s right – you may put certain Medicare expenses down as deductibles if they accounted for more than 7.5% of your adjusted gross income (AGI).
What does this mean? What costs are deductible? It tends to include:
Premiums for Part B and Part D
Copayments
Premiums for Part A (under certain circumstances)
What’s more, you may encounter other costs that aren’t covered by insurance. For example, this may include medical attention while away from home or long-term care. As long as you pay attention to the limits, some could be deductible and therefore critical for your tax filing this year.
If we look at long-term care insurance premiums as an example, those aged between 61 and 70 had a deductible limit in 2020 of $4,350. However, this increased to $5,430 for anybody over the age of 71.
Medicare Medical Savings Account
Although most people don’t have a high-deductible Medicare advantage plan, those who do also have access to a Medicare Medical Savings Account (MSA). After depositing some funds, this money earns interest and is then deductible when spent on medical expenses that qualify.
If you have this plan, look into a Medicare MSA and assess whether it suits your position. Most commonly, this is for healthy people able to pay out-of-pocket expenses and the full deductible for medical surprises and emergencies.
Contact a Professional
If you’re worried about making a decision that could harm your financial future, we recommend getting in touch with a financial professional. Unfortunately, Medicare expenses and tax deductibles are a tricky topic even for those with some experience in the area. You’re welcome to read IRA Publication 502 for more information, but also contact a tax professional to consider your circumstances and receive tailored advice.
If itemizing deductibles is the best strategy for you, don’t forget the applicable Medicare costs!
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.
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