1044. Are rising healthcare costs ruining your budget? Laura answers a listener’s question about how to maximize every tax advantage available for healthcare costs. You’ll learn the rules for deducting them on your tax return or paying them with tax-advantaged savings accounts like HSAs and FSAs. We’ll cover which expenses are tax-free and simple strategies to optimize your healthcare spending.

Key Takeaways:

• You can only claim the medical tax deduction if you itemize deductions on Schedule A instead of claiming the standard deduction on your tax return.
• You can only deduct unreimbursed healthcare expenses that exceed 7.5% of your adjusted gross income (AGI), making the medical deduction best for years with high medical bills.
• Tax-advantaged medical savings accounts are powerful because they allow you to save 20% to 35% on qualified costs without claiming a medical deduction.
• Health savings account (HSA) balances roll over forever, can be invested for tax-free growth, and can be withdrawn penalty-free for non-medical expenses after age 65 (subject to ordinary income tax).
• Flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) are employer-sponsored perks for cutting healthcare costs.
• You cannot claim an itemized medical deduction on Schedule A for any healthcare expense paid for or reimbursed using pre-tax funds from an HSA, FSA, or HRA.
• Lawmakers have expanded HSA, FSA, and HRA qualified expenses to cover various over-the-counter (OTC) medications and products.

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Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

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1043. Dreaming of your next getaway, but need to do it on a budget? Laura demystifies the world of “travel hacking” for complete beginners. You’ll learn how to leverage everyday spending to earn valuable reward points, maximize their redemption value for free travel, and strategically use credit cards without hurting your credit scores or accumulating debt. This is your secret weapon to travel more for a fraction of the cost.

Key Takeaways:

• Travel hacking isn’t about buying things you don't need, but routing daily bills, groceries, and gas through rewards cards to earn a "rebate" on your regular budget.
• High interest rates on rewards cards can wipe out the value of any points earned. If you carry a balance, travel hacking doesn't work.
• Various bank currencies like Chase Ultimate Rewards, Amex Membership Rewards, and Capital One Miles are transferrable, giving you freedom.
• Instead of shopping directly on a retailer's site, use a shopping portal that allows you to stack rewards on top of card points.
• Redeeming points for cash back or merchandise usually yields less than 1 cent per point, which gives you a low value.
• Transferring points directly to airline and hotel loyalty programs, especially during bonus promotions, can boost their value significantly.
• Once you have bank cards with flexible rewards, add specific airline or hotel cards (like Hyatt or Delta) to unlock status, free checked bags, and annual free-night certificates.

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Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

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On a road trip, tackling a summer cleanup, or just catching up on podcasts? QDT has you covered with Summer Saturday encores from your favorite shows. See the full Summer Saturday lineup on Spotify and enjoy this episode, which first aired in November, 2024.

Laura reviews money rules for couples who want to avoid common pitfalls and have a healthy financial life.

Money Girl is hosted by Laura Adams. A transcript is available at Simplecast.

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