What Tax Deductions Can I Take for My Family in 2011, 2012?

As you raise children and care for other family members and dependents, the financial care you provide follows a basic pattern that involves their health, education and welfare.

This notion is so ingrained in our culture that this language is commonly included in Wills and Trusts, and for many years, there was even a federal government agency known as Health, Education and Welfare (now called the Department of Health and Human Services).

Paralleling his thinking, are the items that are deductible under the tax code. They come in three basic categories:

• Medical Expenses (Health)

• Education (Education – duh!)

• Other Expenses (Welfare)

Here are some helpful tips in maximizing the deductions for your family and dependents.

Medical Expenses:

You can deduct your expenses paid for the prevention, diagnosis, or medical treatment of physical or mental illness, plus any amounts paid to treat or modify any part or function of the body for health. These include dental expenses and eye care as well.

You cannot deduct expenses incurred for cosmetic purposes. Transportation to and from the hospitals, doctors’ offices, diagnostic facilities and other locations where medical care is provided, as well as certain amounts for your health insurance premiums, and the costs for prescription drugs and insulin, are all deductible.

These are very significant expenses in many households, and it behooves you to keep track of every potentially deductible medical expense. They are not deductible, however, except to the extent they exceed 7.5% of your adjusted gross income, which is a substantial limitation in itself.

Education Expenses:

Education expenses for higher education are partially deductible as well. Tuition paid for higher education is deductible up to $4,000 per year, and Education Savings Accounts (to save for future tuition) are deductible up to $2,000 per year per child.

Other Opportunities:

There are a variety of other deduction opportunities available, particularly with respect to employment of family members and in making investments through every person within your family unit.

TurboTax online provides outstanding guides and references to you for all of the many options that are available for your own family.

Check out TurboTax Online today and see what other benefits are there for the taking!