Tax Deductions - Overseas ADR

[NJ Gene]

You are welcome Jerry. Feel free to contact anytime in a private message. For people not familiar with taxes and the returns, the deduction is taken on Schedule A, which is for itemized deductions. The first section at the top of the form deals with medical related expenses. For those of you that own a home and pay mortgage interest and real estate taxes, this all goes on the same schedule further down. It's also where you list gifts made to charity.

Gene

[Jerry5]

If we take the money from a retirement account, this is not put back in before sixty days...I asked them to send me the date I asked for reimbursement, hopefully the IRS will accept this, the money will be put back in...
Next, the amount that is not reimbursed, say $7500, can I deduct this and not include this as 'income', or add this to the income, and pay all the extra taxes?

[NJ Gene]

Originally Posted by Jerry5

If we take the money from a retirement account, this is not put back in before sixty days...I asked them to send me the date I asked for reimbursement, hopefully the IRS will accept this, the money will be put back in...
Next, the amount that is not reimbursed, say $7500, can I deduct this and not include this as 'income', or add this to the income, and pay all the extra taxes?

Jerry, one of the exceptions to the 10% premature penalty for IRA distributions is for medical reasons. Forget about repaying the IRA in 60 days, you don't need to do that. The money you take out of your IRA has to be taxed as ordinary income. However, whatever you spend on medical will also be deductible on schedule A (to the extent it exceeds 10% of your adjusted gross income). So it's basically a wash. Bottom line, you can get money from your IRA to pay for your medical costs. Clearly your health and well being are the most important things to consider. I do have to caution you that taking money out of your retirement savings can have major consequences later in life unless you make up for it somehow. Check out the following link: Retirement Topics - Exceptions to Tax on Early Distributions

[Jerry5]

Ok NJ Gene, marked that page, get back to it soon,

The first bill was paid back at the usual deduction, of course they won't pay for the flights, rooms etc, but I will deduct that, I am waiting for the codes to be verified for the surgeons fees...,
How much you want to bet the ADR will be deemed "Not medically necessary" or some such BULL, but they will pay some partial amount for the fusion.
This is very aggravating, this is politics to the nth degree, if you don't have friends in high places (like the other ADR types) then they won't approve your ADR (M6, Freedom),
Hope to get this settled soon.
If they don't approve the WHOLE bill, I will change insurance, but don't think it will really matter after a few more years, under the (Commie Care) the ACA, all workplace insurance will be gone.

[RobertM]

I was talking to my accountant after Labor Day about deductions. My wife and I bought a new bed since the one we had was causing me more back pain. The bed we chose is supposed to help with back pain. Our accountant said that yes we could deduct it as a medical cost.

[Jerry5]

BCBS is not going to pay for the surgeons fees, they are claiming that I exceeded the limit, why have this insurance? Forgot, in a few years, if this ACA is not REPEALED, we won't have to worry about it anymore, there WON'T be ANY.
You can go to a public (DMV) Clinic, stand in line, or pay out of pocket.
LIARS ALL.

NJ Gene, Once I quit fuming, I will send you a PM.