There are some strategic moves related to health-care costs that you might be able to make this year to maximize their tax benefit before the tax deadline in April, 2019.
Experts say it’s worth exploring, as the cost of health care continues its upward trajectory. Last year, per-household spending increased to an average $4,928, up 6.9 percent from $4,612 in 2016, according to recent data from the Bureau of Labor Statistics.
According to Fidelity Investments, the average couple turning 65 today will spend $280,000 on health care during the remainder of their lives.
The three most common planning opportunities involve flexible spending accounts, health savings accounts and the tax deduction for medical expenses. They intertwine in interesting ways, so it’s important to evaluate your own situation to see if there are ways you can maximize their value for 2018, experts say.
Contact your HW & Associates tax professional for more information or to see if you could benefit from any of these options.