Neither my wife or I have worked in over a year. She needed a liver transplant and we left our home in Alaska and moved to the East Coast for better health care. During this entire time my family has supported us financially: flights, hotels, rental cars, food, utilities. I have been working daily towards starting a business. A friend thinks that I can file taxes and recoup some of the money. I welcome any advice.
1 Answer
A friend thinks that I can file taxes and recoup some of the money
Your friend is right. Medical expenses are deductible if you are itemizing your deductions. You may potentially have some business losses you may be able to deduct. Even if not, you may end up with what is called "Net Operating Loss" (NOL) which you can then deduct from your income in the future when you have it, and reduce your taxes. It may not provide money back immediately, but if you expect some income in the future you can definitely use it to reduce future taxes.
See the IRS Publication 536 for details.