Pokemon Go – augmented reality, medical expenses- real tax deduction | VK Consulting LLC
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Pokemon Go – augmented reality, medical expenses- real tax deduction

by | Jul 14, 2016 | Blog |

According to The Washington Post “People are really getting into Pokemon Go, a new mobile take on the classic franchise. In fact, they’re maybe getting a little too into it.The game, made by Niantic and the Pokemon Company, was released late on July 6, and allows players to capture Pokemon in real-world locations. It also quickly led to an unexpected side effect: a number of reported Pokemon-related injuries.”

Gaming is great , but lets talk about medical expenses and whats deductible on your tax return. To start you need to itemize and medical expenses are subject to 10% of AGI. So basically if your adjusted gross income is $50,000 and your medical expenses were $7,500 . If you itemizing you can deduct $2,500 ($7,500-10% of $50,000( $5,000-$2,500). What is deductible: (IRS Topic 502 – Medical and Dental Expenses)

  • Fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners
  • Payments for acupuncture treatments
  • Payments for a center for alcohol or drug addiction
  • Payments to participate in a weight-loss program for a specific disease or diseases diagnosed by a physician
  • Payments for insulin and payments for drugs that require a prescription
  • Payments for false teeth, reading or prescription eyeglasses or contact lenses, hearing aids, crutches, wheelchairs, and for guide dogs for the blind or deaf.
  • Payments for transportation primarily for and essential to medical care that qualify as medical expenses, such as payments of the actual fare for a taxi, bus, train, ambulance, or for transportation by personal car, the amount of your actual out-of-pocket expenses such as for gas and oil, or the amount of the standard mileage rate for medical expenses, plus the cost of tolls and parking

If medical expenses paid with a credit card, taxpayer must claim deduction in the year charge occurred, and not when payment made to the card.

If medical care provided in one year, but paid in the next year, taxpayer should claim expenses in the year payment is made, not year serves was provided.