It can also help you prepare for any expenses you might incur when planning a funeral for a parent or another loved one. Knowing how much a funeral costs and what to expect with funeral planning can help you avoid leaving your loved ones facing a steep bill after you’re gone. The median cost of a funeral with cremation comes in at $6,970, a five-year increase of 11.3%. The median cost of a funeral is $7,848, according to a recent study conducted by the National Funeral Directors Association. But there’s one important end-of-life cost you might be overlooking. Your financial plan might include saving for retirement, putting away money to help your kids through college or building up a rainy day fund. Life insurance can be an effective way to plan ahead for funeral expenses.Prepaying for a funeral has pros and cons.The median cost of a funeral with viewing and burial is $7,848.People with low to moderate incomes, disabilities, and limited English-speaking taxpayers qualify for VITA. Volunteer Income Tax Assistance (VITA): Through the IRS, the VITA program offers free tax return preparation to qualified individuals. Tax Counseling for the Elderly (TCE): The TCE program, offered through the IRS, provides free tax assistance for all taxpayers, specializing in helping adults age 60 years or older with pension and retirement-related questions. Armed Forces and qualified veterans free tax service. MilTax Program: Through Military OneSource, the Department of Defense offers members of the U.S. Be sure to check with the company if both federal and state are free of charge. Note: Not all IRS Free File partners offer free state tax services. IRS Free File: The IRS Free File program is a partnership with brand-name tax preparation and software companies (known as the Free File Alliance) to provide federal income tax return preparation at no cost. Take advantage of these important resources:ĪARP Foundation Tax-Aide: The AARP Foundation Tax-Aide provides free tax assistance to low- to moderate-income taxpayers age 50 or older. Unsure if you're claiming the correct health care and medical expenses? You don't have to go through this process alone! There are several free tax services to help older adults prepare their tax returns. If you pay for medical treatment using a credit card, you deduct the expenses in the year you paid the provider with the credit card, not as you pay your credit card bill.” “If you have a payment plan with the provider,” said Flores, “you will deduct actual payments made during the year, and you might deduct expenses related to one event over two or more tax years. Flores points out that “generally, medical expenses are deductible in the year the provider is paid, regardless of when the services were provided.” That means you'll want to pay close attention to the dates of your payments rather than the dates of your medical appointments. When tracking your deductible medical expenses, it's important to know which costs apply to the current tax year. The Timeline for Tax-Deductible Medical Expenses Pro Tip: Double-check the IRS comprehensive list of approved medical and dental expenses to ensure you're not leaving out unclaimed expenditures.Īlison Flores from H&R Block points out that part of your hospital bill might be deductible if you “were hospitalized for treatment related to COVID-19.” She recommends checking your insurance policy to find out exactly what is covered by your provider and what is not you'll only be able to deduct the expenses that weren't covered by your insurance provider. Transportation and car expenses related to travel to and from medical care.Nursing home care (including meal and lodging costs), if the primary reason for residence is to receive medical care.Medicare Part B and Medicare Part D premiums.Medicare Part A premium (if you aren’t covered under Social Security or weren’t a government employee who paid Medicare tax).Medical services fees from doctors, dentists, surgeons, and specialists.Hospital service fees such as lab work, therapy, nursing services, and surgery. Items such as false teeth, eyeglasses, hearing aids, artificial limbs, and wheelchairs.Medical expenses that are tax-deductible include: After adding up all of your medical expenditures, you'll have a clearer sense of which option, itemized deduction or standard deduction, will work best for your needs. Unreimbursed medical expenses can undoubtedly leave your wallet feeling light. What Medical Expenses Are Tax-Deductible?
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