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Can I deduct certain medical expenses?

jmlaber

Seasoned Expediter
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Hello, I have a question about deducting medical expenses. I had to get a sleep study for my medical card, and now that I know I have sleep apnea, I have to get a CPAP machine for my medical card. My crappy insurance won't cover any of this, so I'm paying several thousand dollars out of pocket. Since I can't get my medical card and do my job without paying these expenses, can I deduct the cost of the sleep study and the machine as a business expense? Also, some of the supplies for the machine have to be replaced every 1 - 6 months, such as the hosing, the mask itself, and other things; can I deduct those as well? Thanks in advance for any help you can provide, and thank you for the help I've gotten in the past :)
Justin
 

EASYTRADER

Expert Expediter
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I would, incidently the FMCSA is wanting to require all CDLs to have sleep studys.

The general rule for right offs is "if it is for business use you can write it off" I would argue that if it wasn't for my cdl I wouldn't have a cpap in the first place.

If you have a lot of medical bills open a Health Savings Account, the all you expenses may be deducted from your personal income side like IRA deductions.

You make tax deffered contributions to the account, and then pay for medical stuff from the account.
 

Fkatz

Veteran Expediter
Charter Member
Offline
hI ALL,

YOUR MEDICAL EXPENSES ARE NOT DEDUCTIBLE ON YOUR BUSINESS NO MATTER WHAT IT IS FOR, EXCEPT YOUE PREMIUMS THAT ARE IN YOUR COMPANY NAME ONLY.

sINCE THIS IS BASICALLY PERSONAL YOU ARE ABLE TO DEDUCT THE COST OF YOUR MEDICAL EXPENSES FROM YOU INDIVIDUAL TAX RETURN ON SCH a- ITEMIZED DEDUCTION, LINE 1, BUT IT MUST BE BROKEN DOWN.

PREMIMUMS
DOCTORS
RX
MILEAGE TO AND FROM MEDICAL PROVIDERS.
BUT THE AMOUNT IS LIMITED TO ANYTHING OVER 7.5% OF YOUR ADJUSTED GROSS INCOME ON PAGE 2, LINE 35 OF YOUR 1040.

IF YOU DO NOT HAVE ANY MORTAGE iNTEREST, REAL ESTATE TAXES, REGULAR PROPERTY TAXES (LIKE VEHICLES) CHARITABLE CONTRIBUTIONS
THAT DO NOT GO OVER THE STANDARD DEDUCTIONS, THE MEDICAL EXPENSE WILL NOT BE DEDUCTED AT ALL.

A HEALTH SAVINGS OR MEDICAL SAVING ACCOUNT IS LIMITED TO CERTAIN MAX LIMITS. DEPENDING WHICH ONE YOU HAVE.

BUT HERE IS THE SITUATION THAT YOU ARE IN,

SINCE YOU HAD TO TAKE THE SLEEP APNEA STUDY, THAT IS THE ONLY ITEM THAT IS DEDUCTIBLE FOR THE CDL.

bUT NO MATTER WEATHER YOU DRIVE A TRUCK, OR HAVE A DAILY COMMUTE TO WORK AND SLEEP AT HOME IT IS NOT A BUSINESS DEDUCTION AT ALL. IT IS PERSONAL,

i KNOW THE COST OF THE ITEMS THAT YOU HAVE TO REPLACE EVERY 3-6 MONTHS.

iT COST ME $330.00 EACH TIME FOR REPLACEMENT HOSES, WATER CONTAINER, FILTERS, MASKS,

sorry for the bad news but that is the IRS law.

iF you use it as a business deduction, there is a very good chance that you would get audited within a year of filing , Chances 1 out of 10 since that are cracking down of Sch C filers.

Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping, Payroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related

penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax
related matters addressed herein.
 

jmlaber

Seasoned Expediter
Offline
Thanks for the reply Frank, but I'm still a little confused.

SINCE YOU HAD TO TAKE THE SLEEP APNEA STUDY, THAT IS THE ONLY ITEM THAT IS DEDUCTIBLE FOR THE CDL.
Does that mean I can deduct the sleep study on Schedule C? But the equipment can only be a personal deduction, and only if I itemize, and only above the 7.5%?

Thanks again!
Justin
 

BigCat

Expert Expediter
Offline
I think he says it isn't a business deduction.


Mayfield Express

Sent from my iPhone using Tapatalk
 

Monty

Expert Expediter
Offline
Anything that involves a business expense, even the cost of your CDL, is deductible.

Since it is a requirement for you to maintain a CDL, I can see no reason you could not deduct the expense on tax report.
 

Fkatz

Veteran Expediter
Charter Member
Offline
I can only go by what the tax law states as far as Medical deductions, I will try and have an exact answer for you intime for the Expo on weather it is deductible or not on your SCH C
 

Fkatz

Veteran Expediter
Charter Member
Offline
I just got off the the phone from the IRS with Mr. Tinsdall, IRS Business Division, Sch C, Taxpayers
in must be in accordance with Publication 535 Business Expenses
He stated that it must be "COMMON AND ACCEPTED" , ALSO IT MUST BE "ORDINARY AND NECESSARY" within the transportation industry IN ORDER TO DEDUCT THESE MEDICAL EXPENSES
 

Rocketman

Veteran Expediter
Offline
I just got off the the phone from the IRS with Mr. Tinsdall, IRS Business Division, Sch C, Taxpayers
in must be in accordance with Publication 535 Business Expenses
He stated that it must be "COMMON AND ACCEPTED" , ALSO IT MUST BE "ORDINARY AND NECESSARY" within the transportation industry IN ORDER TO DEDUCT THESE MEDICAL EXPENSES
Clear as mud?
 

Fkatz

Veteran Expediter
Charter Member
Offline
I attended the IRS Nationwide Tax Formum in Atlanta, GA this past week, and I had a chance to actually speak live with one of them, and they stated that even though it was a DOT Requirement it is not "Common and Accepted", nor "Ordnary but it was Necessary, (IT MUST BE BOTH,) to be able to be deducted on your Sch C.

I do not make the laws, I only try and follow them inorder to give the proper advise,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping,
P
ayroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related

penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax related matters addressed herein.
 
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