Sunday, November 27, 2005

Medicare Plan D Tax Credit

In an earlier post I established that My participation In Medicare Plan D would result in a claim 0f $1,431. This is the projected claim I would be awarded in 2006 if I joined and purchased our usual drug supply.

Trust me, I will Not be Joining Plan D... Plan D will not have to pay this amount to me. Medicare can keep this money.

Should this be a Charitable Deduction or a Tax Credit?

Because I have contributed this amount to the Plan D program, I plan to enter this amount on IRS Form 1040 line 50 Tax Credit

"50 Retirement Savings contributions credit. Attach form 8880 50 __$1431_ "

It seem only fair to do it as a Tax credit.

Most of us seniors don't get much mileage with Itemized Deductions.

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