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Question
What do I do about hospital bills I paid for an injury while I was working as a dog walker with Wag?
AI accountant’s answer:

If you incurred medical expenses due to an injury while working as a dog walker, you may be able to deduct these expenses on your tax return. However, it's important to note that these are considered personal medical expenses, not business expenses.

You can deduct medical expenses on Schedule A (Itemized Deductions) if you choose to itemize your deductions instead of taking the standard deduction. The catch is that you can only deduct the amount of your total medical expenses that exceed 7.5% of your adjusted gross income.

For example, if your adjusted gross income is $50,000, you can only deduct medical expenses that exceed $3,750 (7.5% of $50,000). So if your medical bills were $5,000, you could deduct $1,250 ($5,000 - $3,750).

Remember, this is only beneficial if all your itemized deductions combined exceed the standard deduction for your filing status. For tax year 2023, the standard deduction is $12,950 for single filers and $25,900 for married filing jointly.

Also, make sure to keep all receipts and documentation related to your medical expenses for your records.

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