Are you using the old shoebox method for storing your medical receipts? Do you have to rummage through a pile of receipts, tally them up and hope you didn’t miss anything at the end of the year to prepare for taxes? It can be tedious and time consuming. If you have a dispute with your insurance company, do you know where to find all your records and proof of payment?
Take a few minutes now to organize your medical receipts and records. It is well worth the investment of time. Be sure to read my blog on Organize Your New Year—Taxes.
Buy a 2” three-ringed soft note book and add tabs for every member of the family. In front of the tabs add a columned ledger. I love using these ledgers which you can find at any office supply store. Every time a family member has a medical expense (including prescriptions), add the receipt behind their tab and record the visit on the ledger including the date of service, the recipient and the amount. When you receive the Explanation of Benefits from your insurance company, place them behind the appropriate tab. You now have everything at your finger tips as well as a running tally of all expenses. At the end of the year you simply total the columns and add the binder to your tax files for that year.
It is easy to miss medical deductions on our tax returns if we are not diligent and record every penny spent. Don’t forget to include all of your out-of-pocket expenses, dental, counseling services, vision, pharmaceuticals, physical therapy, medical equipment, co-pay, and of course your medical insurance monthly premiums. If you are not sure if something is eligible—ask!
Let’s keep it simple!