Comments on: Tax Planning as Related to Dental Bills

By: Andrew Stevens

Andrew Stevens — Sat, 22 Sep 2007 19:14:56 +0000

Just noticed that you were talking about 2008, so Sjean was just 100% right.

By: Andrew Stevens

Andrew Stevens — Sat, 22 Sep 2007 19:14:31 +0000

Sjean is right (well, almost, it’s only $4000 combined in 2007, $5000 in 2008). What’s this about both a traditional and a Roth IRA? You mentioned phase-out on the tax deduction, which starts at $50,000 for single taxpayers. After $60,000 and if you have access to a 401(k) (and you do), then you get no tax deduction. Better go with a Roth instead (which is what you should do even if you haven’t reached phase-out). As long as you’re under the income limits, the Roth is the better bet 90% of the time.

By: Tight Fisted Miser

Tight Fisted Miser — Sat, 22 Sep 2007 17:42:25 +0000

What CFO says is correct. My medical/dental expenses will be above 7.5% of my income this year but since I don’t have enough to itemize I can’t use the deduction.

I need to get 3 implants to replace my missing teeth but luckily the empty spaces aren’t too visible. It definitely looks better to have the empty spaces than the broken teeth I had before.

By: Chief Family Officer

Chief Family Officer — Sat, 22 Sep 2007 02:46:50 +0000

Dental work is amazingly expensive, isn’t it? Yikes! If I recall correctly, it’s expenses ABOVE 7.5% that are deductible, not the entire amount once you reach the 7.5% threshold - I couldn’t tell if you were aware of that, but it might change your calculations. Good luck!

By: Mrs. Micah

Mrs. Micah — Sat, 22 Sep 2007 01:49:09 +0000

Sounds like a good step. It can’t hurt to try Joseph’s advice, too. When our insurance was cut for a few months, my pediatrician halved our bills for my sister’s pneumonia! I still remember that act of good will.

By: Single Ma

Single Ma — Fri, 21 Sep 2007 23:12:23 +0000

Wow, you have a lot going on. When it’s all done, you’ll be one foxy mama. HA! I wish you luck in accomplishing everything.

By: Asset Gatherer

Asset Gatherer — Fri, 21 Sep 2007 20:14:53 +0000

It’s so hard being an adult! But I think it’s so good to think about and consider/plan all these things. So many adults try to ignore all of this, burying their heads in the sand and making things worse.

So good for you!

By: SJean

SJean — Fri, 21 Sep 2007 19:16:48 +0000

Fund both a traditional and a Roth IRA? You can only contribute 5k total so it seems to make more sense to pick one. that’s just me though!

By: Joseph Sangl

Joseph Sangl — Fri, 21 Sep 2007 18:12:56 +0000

Have you tried to negotiate with your dentist? Many times, you can receive substantial discounts by paying cash upfront. I’m talking 15% - 40%!!!

Good luck and stick to your long-term plan of purchasing financial freedom!