John C. Suttle Attorney & CPA SuttleLaw, P.C. / Suttle & Company, LLP San Francisco, California. Tax and Financial Considerations

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1 John C. Suttle Attorney & CPA SuttleLaw, P.C. / Suttle & Company, LLP San Francisco, California Tax and Financial Considerations The Myositis Association 2012 Annual Patient Conference September 13-16, 2012

2 Sample Federal Tax Return (4 Pages) Sample Doctor Letter Need For Home Improvements Sample Doctor Letter Need For Caregiver Life Expectancy Tables List of Resources 2

3 Deductible on your % Floor Commonly deductible medical expenses 3

4 Hospital services. Nursing services (including nurse's board when paid by the taxpayer). Medical, laboratory, surgical, dental and other diagnostic and healing services. X-rays. Medicine and drugs (limited to prescription medicine and insulin). Artificial limbs. Ambulance hire. Transportation to and from medical facility. 4

5 Alternative or holistic expenditures yes Administered by non-physician - yes Physical therapy and personal trainer yes Aqua therapy - yes Vitamins no Attending this conference or a KIT meeting o Registration and transportation yes 5

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10 Definition Example Basic Rules o o Primarily for medical care Substantiated Two Types o o Tangible personal property Home improvements 10

11 Non-motorized wheelchairs Motorized scooters and wheelchairs Modification of automobile to accommodate a medical condition Crutches Canes Walkers Inclinators Stand alone lifts (e.g., to lower one into a pool) Specialized utensils, such as grippers Eyeglasses Detachable (i.e., window) air conditioner for the sole use of patient 11

12 Constructing entrance or exit ramps. Widening doorways at entrances and exits. Widening or otherwise modifying hallways and interior doorways. Installing railings, support bars, or other modifications to bathrooms. Lowering or otherwise modifying kitchen cabinets and equipment. Altering the location of or otherwise modifying electrical outlets and fixtures. Installing porch lifts, elevators and other forms of lifts. Modifying fire alarms, smoke detectors, and other warning systems. Modifying stairs. Adding handrails or grab bars whether or not in bathrooms. Modifying hardware on doors. Modifying areas in front of entrance and exit doorways. Grading of ground to provide access to the residence. 12

13 Sample Letter from Doctor Need For Home Improvements (see Handout #2). Two real estate appraisals. 13

14 Comply with State and Federal law: o Immigration Law o Labor Law (Overtime, etc.) o Worker s Compensation Insurance Law o Payroll Tax Law Obtain a letter from your doctor (see Handout #3) for income tax purposes. 14

15 Early withdrawal from IRAs and employer retirement plans on account of disability. Early withdrawal from IRAs and employer retirement plans to pay medical insurance and out-of-pocket expenses. 15

16 Premiums deductible (subject to limits) Benefits excludable from income Employer provided LTC insurance excludable from income 16

17 Help in performing basic activities o Dressing o Bathing o Eating o Toileting o Continence o Transferring o Walking Not covered by Medicare Paying for it 17

18 Income Tax Definition of LT Care Services Income Tax Definition of chronically ill Income Tax Requirements for LT Care Insurance o No buildup of cash surrender value o Only long-term care provided o Costs covered do not include Medicare-covered costs 18

19 Term Insurance Whole Life Insurance Blended Insurance 19

20 Advantages All Life Insurance o Income replacement o Forced savings o Known medical condition may make it sound investment o Proceeds at death income tax-free Advantages Whole Life o Tax deferred buildup of income inside policy o Potential estate tax benefits 20

21 Commissions are high. The annual administrative cost is high. The rates of return are not competitive. 21

22 Life Expectancy Tables (see Handout #4) Need for Budget o Assets o Liabilities o Income o Expenses o Changes over time o Make sure to take long-term care into account Online software available (see Handout #5 List of Resources) 22

23 John C. Suttle Attorney & CPA SuttleLaw, P.C. Suttle & Company, LLP One Front Street, Suite 1300 San Francisco, CA Phone: Direct: Fax:

NATIONAL UNIVERSITY OF HEALTH SCIENCES FLEXIBLE BENEFIT PLAN SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS I. INTRODUCTION...1

NATIONAL UNIVERSITY OF HEALTH SCIENCES FLEXIBLE BENEFIT PLAN SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS Page I. INTRODUCTION...1 II. III. IV. WHO IS ELIGIBLE TO PARTICIPATE IN THE PLAN...1 BENEFITS AVAILABLE