Get Ready For The Obamacare Dental Tax

Under the current tax code, out of pocket medical expenses, including dental work, can be deducted after hitting 7.5% of your gross income. But thanks to Obamacare, the deduction minimum is changing to 10%, so in effect there is a new dental tax. Cheers!

If you’re under 65, on January 1 your medical tax deduction rate (including expenses for dental work) will take a big jump from 7.5% of gross income to 10%. (No change for folks 65 and older.)

If you’re like me, your health insurance pays a minimal amount for routine dental work — with most of the dentist’s bill being paid out of your own pocket. And if, God forbid, you should need additional work (filling cavities, etc.), you end up paying for most of that too.

A couple of cleaning visits plus a little extra corrective work can add up to a tidy sum that, when added to other medical expenses, may reach the 7.5% goalpost.

While this handy IRS bulletin spells out the bad news about the changes in medical deductions, it doesn’t explain why the goalpost was moved up to 10%.

The “why” involves paying for Obamacare. (Read More)

My health insurance doesn’t pay anything for dental care. Dental is covered under a separate policy. It isn’t terribly expensive, nowhere near what health insurance costs, but our plan only covers $1000 per year for work other than preventative care and after a $500 deductible.  I have thousands of dollars in dental work that is scheduled for early next year, but had I been aware of this new dental tax, I might have pushed to have it done this year so I could have met the 7.5% minimum required to deduct some of the expenses.

Note also that Obamacare scales back what is reimbursable under HSAs. Dental care may still be, but over the counter medications won’t be, so this is just one more example of how this rotten law is hitting the middle class in the wallet. Not to mention how our premiums continue to rise, despite the promises that costs would be reduced.

Via iOwnTheWorld