Medical/dental expenses

[ladyjenn]

I understand that you are allowed $60 PP. We are a family of 4 and are looking to file in July hopefully. Unfortunately my daughter desperatley needs braces. We have paid $100 for records (x-rays and molds) with the ortodontist so far. Had a payment plan set up for us. We need $550 down(insurance willpay the other $450), then $135/month after that for 4 years. We have not yet started with any procedures since we are saving to pay the atty. We are not in debt to him in any way, but my question is... am I allowed to add that $135/month to our out of pocket medical/dental expenses on the list of expenses we have each month? We will be paying within 6 months of filing. Is this where they do the 6 month look ahead?
TIA!

[momofthree]

If you add in the $135, does that put you over the $240/mo limit? In other words, do your regular medical/dental expenses add up to more than $105 per month? If so, and you can prove it, then you should be able to claim the amount over the limit.

For example, if over the last 12 months you paid a total of $2400 in out-of-pocket medical expenses, that's $200 a month. Adding in another $135 a month would put you over the limit by $95/mo, so you'd be able to claim that additional amount on your medical expense, but they could request that you prove those expenses.

Hope that makes sense, I can be bad at explaining things at times...

Edited to add: As always asking your attorney is your best resource as he/she is most familiar with how your trustee operates. Adding the additional expense may be no big deal at all. Then again, if you have a particularly strict trustee you may have to come up with every receipt you can find to prove it, lol...

[ladyjenn]

If you add in the $135, does that put you over the $240/mo limit? In other words, do your regular medical/dental expenses add up to more than $105 per month? If so, and you can prove it, then you should be able to claim the amount over the limit.

For example, if over the last 12 months you paid a total of $2400 in out-of-pocket medical expenses, that's $200 a month. Adding in another $135 a month would put you over the limit by $95/mo, so you'd be able to claim that additional amount on your medical expense, but they could request that you prove those expenses.

Hope that makes sense, I can be bad at explaining things at times...

Edited to add: As always asking your attorney is your best resource as he/she is most familiar with how your trustee operates. Adding the additional expense may be no big deal at all. Then again, if you have a particularly strict trustee you may have to come up with every receipt you can find to prove it, lol...

That does not put us over the $240/month. I have $150/month (including braces) listed. I just wasn't sure if they considered it "cosmetic" and wouldn't accept the cost....especially since we only have a contract and haven't started the procedure yet. I do have paper work stating the price breakdown though...
Is it going to be a problem if we aren't paying it as of the time we file, and I claim it as a future expense?
Thanks Momofthree!

[momofthree]

That does not put us over the $240/month. I have $150/month (including braces) listed. I just wasn't sure if they considered it "cosmetic" and wouldn't accept the cost....especially since we only have a contract and haven't started the procedure yet. I do have paper work stating the price breakdown though...
Is it going to be a problem if we aren't paying it as of the time we file, and I claim it as a future expense?
Thanks Momofthree!

I wouldn't tell them more than they need to know. You list $150 month as medical/dental expenses for your family, that is under the IRS standards so they shouldn't question it in the slightest. Medical is one of those types of expenses that aren't necessarily a "monthly" expense, but you still need to put money aside each month for it for when those expenses do hit, and the bk court recognizes that, hence the allowable expense...

I know some months we spend $0 in medical, but then we all get sick at once, or kids need glasses or something, and suddenly you're faced with a $600 bill, so setting money aside each month is crucial when you're living without credit. They understand that, which is why there's a space for it on the means test...

[ladyjenn]

I wouldn't tell them more than they need to know. You list $150 month as medical/dental expenses for your family, that is under the IRS standards so they shouldn't question it in the slightest. Medical is one of those types of expenses that aren't necessarily a "monthly" expense, but you still need to put money aside each month for it for when those expenses do hit, and the bk court recognizes that, hence the allowable expense...

I know some months we spend $0 in medical, but then we all get sick at once, or kids need glasses or something, and suddenly you're faced with a $600 bill, so setting money aside each month is crucial when you're living without credit. They understand that, which is why there's a space for it on the means test...

You rock!!!!! Thank you so much! I really needed those words today!

[ColoradoBell]

I'm in somewhat of the same boat....I have a really high deductible ($4000) and I'm allowed to put up to $4000 a year into an HSA account. My cardiologist wants to see me every month and its $300 a time...so every year, if thats all I have, it doen't quite meet the deductible.

I dont have dental and I need two back molars taken out and replaced with implants for a whopping $9600. When I hadn't any thought of filing for BK, I paid $1000 but they wanted the rest up front before they pulled...I've been too scared to borrow the money and don't have enough in the HSA to cover it all and I'm also afraid to take it out of next paychecks. So I'm just sitting and waiting.

It seems that the guidelines by the IRS are so that if you go over, you just have to show receipts...