Managing healthcare costs is one of the biggest financial hurdles in retirement. According to AARP, the average Medicare beneficiary spends roughly $7,295 annually on out-of-pocket medical care. But there may be ways to save.
One way is through your federal tax return. By utilizing the medical expense deduction, you can deduct qualifying, unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI). While this strategy requires electing to itemize rather than claiming the standard deduction, heavy medical bills might justify the extra paperwork.
