ROTH CONTRIBUTIONS PRIOR TO 2022

[leechipturner]

I am 68 years old.  I have 2 Roth accounts that I haven't contributed to in years.  Last year I took money out for medical expenses.  TT is asking me for contributions prior to 2022.  Good Grief, that could be decades of information that I have to figure out.  Why is it doing this?  And do I have to go back decades??

[MinhT1]

As you are over 59 1/2 and your Roth IRA accounts are more than 5 years old, all distributions from these accounts are tax-free.

TurboTax needs your past contributions to these Roth IRA to determine the taxable part if you are younger than 59 1/2 and/or the Roth IRA accounts are less than 5 years old. This number is not reported on your tax return.

This does not apply to you and you can skip this question.

[leechipturner]

Can I ask a separate question?  Last year, I was dealing with severe back pain that conventional medicine in the US could not help.  I went to Panama for stem cells, which made me pain-free.  The cost was $25,400 which was a package (treatments, hotel, airport transfers), the airfare also cost $2389.07.  Took a long time to save this money up, but it was well spent.  Is any of it medically deductible?

[Opus 17]

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@leechipturner wrote:

Can I ask a separate question?  Last year, I was dealing with severe back pain that conventional medicine in the US could not help.  I went to Panama for stem cells, which made me pain-free.  The cost was $25,400 which was a package (treatments, hotel, airport transfers), the airfare also cost $2389.07.  Took a long time to save this money up, but it was well spent.  Is any of it medically deductible?

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That's tricky.  The IRS says,

https://www.irs.gov/pub/irs-pdf/p502.pdf

Illegal Operations and Treatments

You can't include in medical expenses amounts you pay for illegal operations, treatments, or controlled substances whether rendered or prescribed by licensed or unlicensed practitioners.

Medicines and Drugs From Other Countries

In general, you can't include in your medical expenses the cost of a prescribed drug brought in (or ordered and shipped) from another country. You can only include the cost of a drug that was imported legally. For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals.

You can include the cost of a prescribed drug you purchase and consume in another country if the drug is legal in both the other country and the United States.

If we assume the treatment is deductible, then you can deduct your actual travel costs (plane fare, etc.) and $50 per night for lodging.

I don't know the status of stem cell treatments.  Are they approved in the US but more expensive, or are they not approved by the FDA but not technically illegal, or are they actually illegal?

(For example, PRP therapy is only FDA approved to help bone grafts heal, but doctors may use it for other conditions.)

[MinhT1]

Yes.

Stem cell treatment may be deductible as medical expenses.

Please read this IRS document for more information.

Also, In general, taxpayers who seek medical services abroad are subject to the same rules and regulations as taxpayers who seek medical treatment within the United States. Th treatment has to be prescribed by a medical doctor.

Please read this CPA journal document for more information.

For tax year 2022, Medical Expenses are subject to the 7.5% rule and you can only claim the excess over 7.5% of your Adjusted Gross Income.

Please note that Itemized Deductions will only benefit your taxes when they exceed your standard deduction.

For 2022, standard deductions are:

For a taxpayer under 65, not claimed as a dependent

• $12,950 for Single
• $25.900 for Married Filing Jointly, or Qualifying Widow(er) with dependent child
• $19,400 for Head of Ho0sehold
• $12,950 for Married Filing Separately
• If you are over 65 or blind, add $1,400 for each instance if married or add $1,750 each instance if single or head of household