Everyday Law & Life

Can You Deduct Medical Expenses on Your Taxes in the U.S.? Here's What Qualifies Medical bills can add up fast — but did you know that some of those expenses may be deductible on your taxes ? Let’s explore when and how you can claim medical expense deductions in the U.S., and what qualifies under IRS rules. 🧾 What Is the Medical Expense Deduction? You may be able to deduct qualified unreimbursed medical expenses — but only if you itemize deductions on your tax return. 🔍 They must exceed 7.5% of your Adjusted Gross Income (AGI) to be deductible. 💡 Example: AGI: $60,000 7.5% of AGI = $4,500 If your out-of-pocket medical costs = $7,000 → You can deduct $2,500 on Schedule A ✅ What Medical Expenses Qualify? You can deduct: Doctor, dentist, surgeon, chiropractor, psychiatrist fees Hospital services & nursing care Prescription medications & insulin Health insurance premiums (if not employer-paid) Long-term care costs Medical eq...

Do You Have to Pay Taxes on Your Severance Package in the U.S.? If you've been laid off, your employer might offer you a severance package — a lump sum or series of payments to support you after separation. But here's the catch: Will the IRS take a slice of it? Let’s break it down simply. ✅ Yes, Severance Pay Is Taxable The IRS treats severance pay as regular income , meaning: Federal income tax applies Social Security and Medicare taxes apply State income tax may apply , depending on where you live In short: You don’t keep the full amount. 💡 How Is It Taxed? Usually, a flat 22% federal withholding is applied (as with bonuses) States may withhold separately It counts toward your total annual income , which could push you into a higher tax bracket 🧾 Severance vs. Unemployment Benefits Receiving a severance package may: Delay your eligibility for unemployment in some states Reduce your benefit amount temporarily ⚠️ Always repo...