More medical expense deductions If you have a health care FSA, good news: The limit for tax-free contributions has increased to $2,750 — up $50 from last year. The change was part of the IRS’s annual inflation adjustments. That means you can contribute more money to your account without getting taxed on it. Some medical expenses are tax-deductible — and Congress passed a more generous allowance for what you can deduct as part of the December stimulus bill. Instead of capping expenses that exceed 10% of your adjusted gross income, as was originally planned, you can now deduct medical expenses that exceed 7.5% of your AGI. You can find the full list of medical expenses you can deduct on the IRS’s website, including doctor’s fees and inpatient hospital care.
Here’s everything you need to know about the stimulus bill health benefits that could save you money this year. Plus, here’s when you can expect your third stimulus check, what we’ve heard so far about a potential fourth stimulus check and 9 unusual stimulus check facts you didn’t know, but should. Those with health care flexible spending accounts can contribute more money tax-free this year. And those with medical expenses can deduct more money on their 2020 tax return, so long as you file by the new May 17 deadline. Perhaps most importantly, the March stimulus package includes new options for people who need health insurance, and resources to help lower costs for those who are already insured.
Health flexible spending plan changes The March stimulus bill includes benefits for millions of Americans, including a third stimulus check for up to $1,400 per person, an expanded child tax credit (how to calculate your CTC total) and several other tax breaks for people who are unemployed, low-income or have kids. But the bill, along with some other IRS changes this year, also includes important updates and tax breaks for medical care and health insurance that could benefit your family.
Free COBRA insurance coverage Typically, if you lose your job, you can buy insurance coverage through your former employer under the government COBRA (Consolidated Omnibus Budget Reconciliation Act) program. However, you typically have to pay the full price for that insurance, which can be very costly. But under the March stimulus bill, the government will pay the entire COBRA premium from April 1 through Sept. 30 for laid-off employees and family members. (However, you’re not eligible if you have Medicare, if you left your job voluntarily, or if you qualify for new, employer-based health insurance somewhere else before that date.) 3:26
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The News Highlights
- Not just $ 1,400 stimulus checks: new health care, HSA, insurance and COBRA savings you can get
- Check the latest Health news updates and information about health.
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