The medical expense tax deduction helps millions of middle-income taxpayers of all ages confront extraordinarily high out-of-pocket health care costs.
It may not seem like it for many Americans, but recent health care spending in the United States has been growing at historically low levels. Between 2000 and 2007, per capita health spending grew at an average annual rate of 7.55 percent. Then we saw a steep decline between 2008 and 2014, when the rate dropped to an average 3.2 percent per year.
If you want to help pay for higher education for a child or grandchild, consider using a 529 college savings plan. These plans allow you to put money aside for tuition and other college-related expenses, while getting some nice tax advantages as well. Since I have a son who will be college bound in a couple of years, I've looked at all sorts of ways to pay for it and can say the 529 plan is by far the best for me.
It's the kind of news story that makes national headlines every year or two: A person of seemingly modest means secretly amasses a small (or not so small) fortune while leading a frugal lifestyle, only to reveal that wealth by giving it all away to charity.
April may seem far away, but thinking about your taxes now can leave you with more money in your pocket later. Start gathering your receipts and records, and take advantage of every tax break you can.
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