Good record-keeping of your ADHD treatment expenses translates into big savings in two common scenarios.
1. If you've signed up for a flexible spending arrangement (FSA) with your employer.
FSAs let workers set aside pretax dollars to pay for medical costs that crop up during the course of the year. (Depending on your tax bracket, the savings can be substantial.) At the end of the year, you must provide detailed receipts for every health-care expense - or you risk losing the money that was set aside. See IRS.gov for more information about FSAs.
2. If your family has high health-care costs.
If your family's total health-care costs for the year exceed 7.5 percent of your adjusted gross income, you may be eligible for the medical expense tax deduction. (To find out which expenses qualify, and to learn how to claim the deduction, go to IRS.gov.) Families who claim this deduction can save hundreds, or even thousands, on their federal income tax.
This article comes from the February/March 2006 issue of ADDitude.
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