How stress or depression can reduce your income tax liability

Oh the American dream! We all struggle and fight to reach that level of nirvana when we can say that we have truly achieved the American dream, the hope with which our founding fathers built this nation. With that constant struggle comes added pressure. With added pressure come stress and the accompanying depression—the two things that have now come to define that darn American dream that everyone keeps harping on.

I’m here to say (well, in this case write) three big, scary words for you. Income tax liabilities. Did I see some of the readers faint or shudder? Yes? I thought so. Remember the stress and depression that I mentioned earlier? Are your taxes giving you some of that heartache? Stress and depression may be your enemies, my friend. But they might just help you reduce your—let’s say it together now—income tax liabilities! Do I hear applause? Well, not so fast. Read on! Here’s what you need to know:

1.     Pay your medical expenses

Has your stress and anxiety caused you some real pain? I mean, did you literally have to visit a doctor? Are you filing your taxes? I’m sorry for your health problems but I can help you save some money. Deduct those expenses and save on tax payment. It’s really that easy. Maximizing deductions will help you cut down on your taxable income and what does that mean? Lesser taxes, baby! The IRS defines medical expenditures as costs for diagnosis, treatment, cure, alleviation or prevention of a disease. You, the taxpayer, can deduct these medical (and dental) expenses that exceed 7.5 percent of your adjusted gross income. The expenses are eligible for deduction in the year paid. So, what are you waiting for? Pay those bills and file your returns! It’s tax season!

2.     ObamaCare or the Affordable Care Act

You wanna know something funny? Even though these words were thrown around a lot during the elections, very few Americans can wrap their heads around the concept of ObamaCare and health insurance. Just in case you are one of the people who can’t, here’s what you need to know about it. This is just a way for everyone (and I mean, everyone) to be eligible for health insurance, to make it easier for us mere mortals to pay escalating medical bills. If your income falls within the bracket that ObamaCare has deemed worthy of tax credits, good for you! If not, I’d suggest you still apply for it. You’ll be sure to get an incredibly good deal anyway. Choose the right plan to avail benefits that will cover any expenses levied by the stress at work or the depression caused by your painful, non-existent love life. *wink*

3.     Things are changing

The times, they are a changin’. No seriously. Earlier, the United States Tax court would not have even casually glanced at cases dealing with stress at the work place. However, recent cases (read them here) have spurred a change in this regard. A few people have received non-taxable compensation for the medical conditions that have been “spiked” due to pressures and emotional distress at their work place. Now, I’m not saying that every average Joe should go for this option, but if your case is really serious, I’m saying don’t hesitate. Perhaps in the coming years, we will see a change in policy that will include these expenses beforehand. One can dream. Before filing for such deductions though, it would be good if you go for some tax consultation. And you don’t even have to get your lazy behind off that lounge chair. You can now get an income tax consultant online, like at 1800accountant.com. I love the internet, don’t you?

These are some pointers that you should keep in mind while filing for your taxes. Keeping them in your head, you won’t find filing taxes such a terrible pain anymore. If you can’t get away from paying taxes, you might as well reduce them as much as you can, right? And if you have genuine reasons like medical expenses, the lesser taxes you pay, the better. So follow my advice and happy filing everyone!