7 Tax Facts about Medical & Dental Expenses

If you paid for medical or dental expenses in 2012, you may be able to get a tax deduction for costs not covered by insurance. The IRS wants you to know these seven facts about claiming the medical and dental expense deduction.

1. You must itemize.  You can only claim medical and dental expenses for costs not covered by insurance if you itemize deductions on your tax return. You cannot claim medical and dental expenses if you take the standard deduction.

2. Deduction is limited.  You can deduct medical and dental expenses that are more than 7.5 percent of your adjusted gross income.

3. Expenses paid in 2012.  You can include medical and dental costs that you paid in 2012, even if you received the services in a previous year. Keep good records to show the amount that you paid.

4. Qualifying expenses.  You may include most medical or dental costs that you paid for yourself, your spouse and your dependents. Some exceptions and special rules apply. Visit IRS.gov for more details.

5. Costs to include.  You can normally claim the costs of diagnosing, treating, easing or preventing disease. The costs of prescription drugs and insulin qualify. The cost of medical, dental and some long-term care insurance also qualify.

6. Travel is included.  You may be able to claim the cost of travel to obtain medical care. That includes the cost of public transportation or an ambulance as well as tolls and parking fees. If you use your car for medical travel, you can deduct the actual costs, including gas and oil. Instead of deducting the actual costs, you can deduct the standard mileage rate for medical travel, which is 23 cents per mile for 2012.

7. No double benefit.  Funds from Health Savings Accounts or Flexible Spending Arrangements used to pay for medical or dental costs are usually tax-free. Therefore, you cannot deduct expenses paid with funds from those plans.

Additional IRS Resources:

You’ll find more information in IRS Publication 502, Medical and Dental Expenses. Also see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. They are available at IRS.gov

• Publication 502, Medical and Dental Expenses
• Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans

IRS YouTube Videos:

• Medical and Dental Expenses – English | Spanish 

This information has been provided by the IRS as a guide for taxpayers. If you have any questions, please contact our office at (239) 433-5554. 

Congress passes one-year SGR fix as part of fiscal cliff legislation

On Tuesday, Congress passed The American Taxpayer Relief Act of 2012, to avert the “fiscal cliff.” President Obama signed the legislation on Wednesday. In addition to various tax and spending measures, the legislation includes provisions of direct importance to medical group practices. The legislation:

• Prevents the Medicare physician payment SGR cut for one year. It eliminates the 27 percent Medicare physician payment cut, which took effect today and replaces it with a “zero percent update” to the Medicare physician fee schedule conversion factor for 2013. As has occurred with prior temporary extensions of this kind, this is not a fee schedule rate freeze. It means any conversion factor adjustments and RVU changes contained in the final fee schedule rule for 2013 may result in payment rate changes, but the massive SGR cut is nullified for a year.

• Turns off the January 2, 2013 sequester for two months. This prevents various defense and other automatic cuts from occurring, including an across the board, two percent cut for all Medicare providers. It’s expected Congress will revisit issues related to the sequester in the near future.

• Extends the Medicare 1.0 work RVU GPCI floor through December 31, 2013.

• Increases the Medicare Part B equipment utilization assumption for advanced imaging services to 90 percent effective for fee schedules established for 2014 and subsequent years, thus reducing future payments.

• Extends the Medicare therapy cap exception process through December 31, 2013.

• Increases the Medicare therapy service multiple procedure payment reduction from 25 to 50 percent effective April 1, 2013.

This information has been provided as a summary of the provisions included in the American Taxpayer Relief Act. Please contact our office at (239) 433-5554 if you have questions regarding this information and how it will impact your specific situation.

Physicians in Naples are invited to attend the “Future of Health Care in America” symposium and dinner event on September 6 at Gordon’s on the River at Naples Harbour Yacht Club. Attendees should anticipate a highly interactive discussion and debate with Jonathan Fleece, co-author of “The New Health Age,” a book that sets forth what health care and medicine will look like in the years ahead.

The dinner event is hosted by Markham Norton Mosteller Wright & Company, All Trust Insurance and Concierge Home Health Care in conjunction with the Collier County Medical Society.

To register, visit http://tinyurl.com/br76st5

 More than 80 Lee County physicians and administrators attended the “Future of Health Care in America” symposium and dinner event on May 17 at Cypress Lake Country Club in Fort Myers. Attendees participated in a highly interactive discussion and debate with Jonathan Fleece, co-author of “The New Health Age,” a book that sets forth what health care and medicine will look like in the years ahead. The event was hosted by Markham Norton Mosteller Wright & Company P.A. and All Trust Insurance, in conjunction with the Lee County Medical Society.

Markham Norton Mosteller Wright & Company P.A. is a certified public accounting and consulting firm with offices in Fort Myers and Naples. They offer a wide range of services including business consulting, technology consulting, technology management and support, tax preparation and planning, audits and reviews, litigation, mediation, forensic accounting and elder services. For more information, call 239-433-5554 or visit www.markham-norton.com.

MNMW is pleased to share the spring 2012 In Addition newsletter.

Read it by clicking on the image below.

Last week, I attended the annual meeting of the National Society of Certified Healthcare Business Consultants (www.nschbc.org), where several excellent presentations were given on the topics of ICD-10 and Version 5010.   As a result, I would like to share some key dates and information with you that will assist with smooth transition within your practice.

As you probably are aware, on October 1, 2013, medical coding in U.S. health care settings will change from ICD-9 to ICD-10. The transition will require business and systems changes throughout the health care industry. Everyone who is covered by the Health Insurance Portability and Accountability Act (HIPAA) must make the transition, not just those who submit Medicare or Medicaid claims.

The first ICD-10-related compliance date is less than two (2) years away. On January 1, 2012, standards for electronic health transactions change from Version 4010/4010A1 to Version 5010. Unlike Version 4010, Version 5010 accommodates the ICD-10 code structure. This change occurs before the ICD-10 implementation date to allow adequate testing and implementation time.

Preparing for ICD-10 and Version 5010 – including potential updated software installation, staff training, changes to business operations and workflows, internal and external testing, reprinting of manuals and other materials, and more – will take time. Therefore, as you begin to prepare for implementation and test ICD-10 this year, we would like to share with you several resources that may be useful for the transition within your practice.

In January 2011, The Centers for Medicare and Medicaid Services (CMS) hosted a national provider teleconference on “Preparing for ICD-10 Implementation in 2011.” During the event, experts reviewed basic information on the transition to ICD-10 and discussed implementation planning and preparation strategies for 2011. From the event, presentation materials and podcasts have been created. To access and download this information, visit http://www.cms.gov/ICD10/Tel10/itemdetail.asp?itemID=CMS1242831.

CMS has also compiled resources for medical providers that will guide administrators through the compliance timelines, frequently asked questions and other transitional topics. To access and download these resources, visit http://www.cms.gov/ICD10/05a_ProviderResources.asp#TopOfPage.

Should you have any questions regarding these topics, please contact me at (239) 433-5554 to discuss your specific situation further.

Sincerely,

Karen L. Mosteller, CPA, CHBC

Markham Norton Mosteller Wright & Company, P.A. announces that firm partner, Karen Mosteller has been reappointed to serve on the Accounting Careers steering committee with the Florida Institute of Certified Public Accountants (FICPA). Mosteller is the consulting and technology partner with Markham Norton Mosteller Wright & Company. She is a certified public accountant and a certified healthcare business consultant. She is a graduate of the University of South Florida, Fort Myers. Mosteller specializes in business consulting and tax services for medical practices, construction and service companies to improve their processes, tighten their bottom line and improve profitability

Markham Norton Mosteller Wright & Company P.A. is a certified public accounting and consulting firm with offices in Fort Myers and Naples.  They offer a wide range of services including business consulting, technology consulting, tax preparation and planning, litigation, mediation, forensic accounting and elder services. For more information about the firm, call 239-433-5554 or visit www.markham-norton.com.

Markham Norton Mosteller Wright & Company, P.A. announces that firm partner, Karen Mosteller is celebrating 25 years of employment with the company. Mosteller is the consulting and technology partner with Markham Norton Mosteller Wright & Company. She is a certified public accountant and a certified healthcare business consultant. She is a graduate of the University of South Florida, Fort Myers. Mosteller specializes in business consulting and tax services for medical practices, construction and service companies to improve their processes, tighten their bottom line and improve profitability

Markham Norton Mosteller Wright & Company P.A. is a certified public accounting and consulting firm with offices in Fort Myers and Naples.  They offer a wide range of services including business consulting, technology consulting, tax preparation and planning, litigation, mediation, forensic accounting and elder services. For more information about the firm, call 239-433-5554 or visit www.markham-norton.com.

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