Medical Expenses Can Be a Valuable Income-Tax Deduction - Brief Article

Healthcare Financial Management, April, 2001 by William G. Kistner

To have an MSA, a person cannot be covered under a health plan in addition to the high-deductible health plan, unless the additional coverage is for accidents, disability dental care, vision care, long-term care, or another type of permitted insurance. The number of persons eligible to set up MSAs is capped at 750,000 nationally.

Conclusion

Taxpayers who keep careful records of their medical and dental expenses may be able to reduce their Federal income-tax liability if their expenses qualify as deductions. They should review their medical costs for the year and calculate the tax effect they could achieve by itemizing their deductions.

Ernst & Young LLP, Chicago, Illinois, and a member of HFMA's First Illinois Chapter. His address is Ernst & Young LLP, 233 South Wacker Drive, Chicago, Illinois 60606-6301. His telephone number is (312) 879-2022.

William G. Kistner, MM, CPA, is a tax partner,