How do YOU classify your drugs?

I classify such things under "personal Care"

Ditto.

Same with things like vitamins and other non-medical items purchased at the drug store.

Not sure what metamucil is, but as I have a Health Savings account at work, I keep tabs on all medicine (Drugs) that I buy, whether it is OTC or prescription. Same category, Payee tells the difference between Prescription and OTC.

Are you talking about potential medical deductions?

Prescribed drugs are the only ones that fall into this category. Some drugs, such as Ibuprofen, can be prescribed, but are also available over-the-counter.

Notan

"Mike B" wrote

Prescription

OK, I have to ask: Are you saying that where (Payee) you purchase prescriptions (a potential Sched A entry) you NEVER purchase OTC or non-drug items (non-potential Schedule entries)?

Differentiating between tax deductible and non-tax deductible items with Payee alone would be error prone for me, as well as others, I suspect.

How does the Health Savings account come into play here (I've never had one).

My Medical Insurance has an on-line pharmacy. So prescription meds come from them. Until the end of last year they used to bill my CC and I could tell from the Payee field that it was for prescription meds. This year they deduct our copay directly from the Health Savings account, so I don't even have to make the claim anymore. All that remains are stuff like OTC allergy meds. We usually buy those (and only those) from Walgreens, so when I see a Walgreens payee I know. I can see that things could get more complicated if one has much activity in the medications area, but we are fortunate, I guess.

The Health Savings account is a tax dodge, where you give up a portion of your salary (Max $5,000/year) and in turn you can claim that much in medical expenses from your employer. Net effect is that you pay up to $5,000 in medical expenses in pre-tax money instead of after-tax money. The catch is thtat any money left unclaimed is forfeited and you have to determine in advance (usually Oct/Nov) how much you want to set aside for the next year's expenses. Last year it meant that the whole family got new eye prescriptions in Dec. :) Still we gave up about $133 that we couldn't claim - which diminish the tax benefit substantially.

"Mike B" wrote

(snip)

prescriptions

TY. I knew what the account was, I just couldn't see how it related in this thread, AFA drug classifications. OK, we're all seeing 20-20 now.

I have quite a few subcategories under "medical." I also use an "H S A" class to keep track of those that can be paid for from the H S A, but aren't tax deductible, such as OTC drugs. That way I can run an H S A report to see how I stand regarding that portion of medical; I can also run a report of those medical expenses that are tax-deductible (marked as tax-related).

No.... not really

But maybe I should think along these lines as someday maybe I "could" use them as deductions?

wrote

Yes, I believe you should. I have a "Medical" category with subcategories, one of which is "Prescriptions".

Something that I didn't see in the thread is that , I think it was for this year, over the counter medications ARE now allowable for Health Savings Accounts claims...no longer need a prescription for EVERYTHING to be allowable for reimbursement from a HSA.

OK...

But again.... what category to use for things that are drugs in some way but over the counter type stuff? Like prilosec or metamucil or toothbrushes?

use a "personal care" category?

Good point

I don't have a HSA tho

Maybe I should?

Call it whatever you want... There are no rules!

Notan

I have a category called "Supplies" that I would put all of that in. However, "personal care" will give you more detail, if you need the detail.

I used to categorize in great detail. After I found I didn't need much detail, I consolidated categories. If an item isn't tax or business oriented, I don't need much category resolution. I don't use the budget feature in Q either so I'm not the best one to respond. If you don't use the budget, ask yourself, "Do I ever foresee the need to make a report on what I spend for personal care?"

I know

But I'm wanting to know what YOU guys use

trying to get ideas

I'm apologizing to the group - I must have been asleep at the wheel when I posted this, since what I quoted and was commenting about was exactly what I didn't see....that now in 2005 OTC drugs/medications are allowable for HSA and HCRA accounts. Sorry Thomas!

---------------------------------------------------------------- Regards -

- Andrew

A toothbrush is a drug??

All medical expense & insurance gets a category "medical" and a subcategory made up of 3 parts:

1st part: "exp" or "ins" expense or insurance reimbursement 2nd part: "T" or "N" tax deductable or not. 3rd part: blank if not covered by insurance "ded" if this expense applies to the insurance deductable nnn 3 digits, the percent paid by insurance "var" when insurance does not pay a fixed percentage "nnnwo" expense that the medical provider has to write off

So metamucil would get the subcategory "expN" - expense, not tax deductable, not covered by insurance.

Lets say I'm billed $100 and expect 80% insurance coverage, the insurance company states that per their agreement with the doctor the charge is reduced $10, to 90 dollars. The quicken entries in the doctors account will eventually be

expT080 100 insT080wo -10 insT080 -72 (80% of the $90 balance) [checking] -18 (I pay 20% of the $90 balance) total 0

All quicken entries for this service are made using the service date, so the 4 entries above are in that sequence in the providers register and, when all entries have been made, the register shows a zero total for that service date. (the actual transaction date is in the memo field)

At tax time, the sum of the "T" subcategories is medical deduction,

100-10-72= 18.

At any time I can check for outstanding 80% insurance payments by totaling the subcategories and checking the relationship

(expT080 - insT80wo) * .80 = insT080

If that computation is not correct the either insurance payments are missing or I have categorized an expense as 80% covered when, in fact, it is not. Those subcategory totals can be checked by provider so that you which doctors have outstanding insurance claims.

At least that's how it was until our insurance plan changed for drugs. Now we order drugs from the insurance company and make a copay. So now a drug purchase covered by insurance is entered with one of the subcategories

RxCopayHim RxCopayHer

dick w