Today TaxMama hears from someone who will remain anonymous. She was shocked to learn that her man has been secretly abusing drugs for several years. When asked where he got the money? She admitted that he had gained access to an ATM card on an account she wasn’t watching and had depleted that account.

Today TaxMama hears from Chris in the TaxQuips Forum, with a common problem. “It was mentioned by TaxMama on a news website today that money spent on substance abuse treatment is deductible as medical expenses. My 24 year old son has been in different forms of treatment over the last 4 years. While he was a dependant we spent about $40k on treatment facilities. Can we go back and file for that loss? He now files on his own and is currently seeing a professional for his abuse problems. Is that treatment a deduction?”

http://taxmama.com/forum/taxquips/deduction-for-substance-abuse-treatment/

Listen here  -  Tax Tips for Individuals                         Read the script of the show below:

PROGRAM 1: Tax Tips for Individuals

Originally aired:   Thursday, March 25    10:00 a.m. – 11:00 a.m. EDT

Introduction – Tax Mama

• Welcome and Introductions

o        Thanks for joining

§                    Introduce hosts:

§                    Chris Wilson, Master Tax Advisor

o        Wilson has been a master tax advisor with H&R Block for 7 years. He also has experience in business management, coaching and investing.  He holds a Bachelor of Arts in Business Administration with a concentration in Accounting. His areas of expertise include: investments/stock options, home ownership, real estate rentals or vacation homes, healthcare expenses, non-U.S. citizens, income earned outside the U.S., small business, sole proprietor or self-employed.  He resides in Shelby, NC and served as a business mentor for Duke University Fuqua School of Business summer leadership program in 2006 and 2007.

§                    Leigh Mutert, CPA
Mutert obtained her MBA from the University of Kansas and is a licensed CPA in Kansas.  After beginning her career with Deloitte, she took time off to raise a family.  She joined H&R Block in 2002 where she has successfully worked in roles ranging from tax professional to Business Development for the online products group.  She is currently the Community Manager in the Social Media Marketing Department.

§                    My name is Eva Rosenberg, Enrolled Agent

• I am the Internet’s TaxMama at TaxMama.com – author, nationally syndicated tax columnist at Dow Jones’ MarketWatch.com. I have decades of tax experience, starting with National CPA firms and spending the last 10 years answering your questions at TaxMama.com .
• Brief overview of topics to discuss

o        Key tax law changes

o        What to know if you were unemployed and looking for a job in 2009

o        Critical tips for last minute filers

• We encourage questions – this is an interactive program

Today TaxMama hears from Kathy in the TaxQuips Forum with this interesting question. “My client and his young son traveled to Qingdao, China last year for the transplant of umbilical cord blood stem cells from my client’s daughter, for the treatment of quadriplegic cerebral palsy, at the Beike Biotech section of the hospital.  Are the airfare and medical expenses deductible?”
ttp://taxmama.com/forum/taxquips/foreign-medical-exp/

Today TaxMama hears from Elaine in the TaxQuips forum, who tells us. “I have a client that is retiring now at age 55. He will receive $185,000 in deferred compensation. The company will withhold $111,000 for lifetime medical insurance for him. Can the whole $111,000 be deducted in the year paid?”

Taxpayers with disabilities may qualify for a number of IRS tax credits and benefits. Parents of children with disabilities may also qualify. Listed below are seven tax credits and other benefits that are available if you or someone else listed on your federal tax return is disabled.

1. Standard Deduction Taxpayers who are legally blind may be entitled to a higher standard deduction on their tax return.

Today TaxMama hears from Angie in North Carolina. She tells us, “I have already filed my taxes. I had enough in medical bills to file, but didn’t realize until I had already filed. Gross income was $30,000 and my medical bills out of pocket were $2,400 (which is very unusual). Would be worth while to file a amendment?”

Today TaxMama hears from Angela in Georgia with this story. “I do my friend’s taxes. Can he deduct an above-ground pool installation that was recommended by doctor? His wife has MS and needs to do exercises. The doctor felt that exercises done in water will help her. It has not increased the value of home. He wants to know if it is tax deductible?”

Dear Angela,

Yes, your friend is entitled to take a medical deduction for the pool. Be sure to keep a copy of the written prescription or recommendation from the doctor in the tax file for that tax return.

Naturally, the deduction will be reduced by 7.5% of his adjusted gross income. So it’s time to maximize the medical expenses. Add in all the unreimbursed medical expenses you can find. Look for co-pays, medical mileage, and prescriptions. Don’t forget insurance. You may have enough to make the deduction worthwhile.

And remember, you can find answers to all kinds of questions about medical expenses and other tax issues, free. Where? Where else? At TaxMama.com

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]

• Ask TaxMama :: Where taxes are fun and answers are free
• www.TaxQuips.com :: The number ONE free tax podcast online
• IRS Publication 502 :: Medical and Dental Expenses

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Today TaxMama hears from Carrie in Vermont who says, “I have a handicapped son. This spring we built a deck with ramp onto our house. I have heard that the deck cannot be taxed for property tax purposes because of this. Is that true?”

Today TaxMama hears from Mike in Wisconsin who asks. “Is there anything in the Tax Codes that allows you to put a certain percentage of your total food cost towards a medical deduction when you have been diagnosed as a borderline diabetic? After all, you do have to watch your total diet to keep this under control.”