*in 2018 America
I know the idea of budgeting for therapy is stressful, but it may not cost as much as you think. I’ll try to get you some answers.
The first question is an awkward one (sorry!): how much money does your household make in a year?
I’d estimate that each session might cost you $. But if you already have someone in mind and you know what they charge, you can adjust your rate.
We’re gonna need some details on your plan’s mental health benefits. You can check online, or call your insurance company’s help line to have a real person explain everything. You’ll want to know:
When you’re ready, let’s walk through the options.
Let’s apply your insurance and see if that lowers your costs.
The coverage you have may still be helpful. Let’s check. I entered some example amounts here for you, but you should adjust them.
That brought your cost down to $ per year, or about $ per session averaged out. Getting less scary?
There’s another thing to check: tax deductions.
I know, thinking about taxes right now is kinda terrible. But deductions might make a big difference. Taxes come into play if you’re eligible for a Flexible Spending Account (FSA) or a Health Savings Account (HSA). You may even be able to deduct your therapy bills directly.
The more you contribute here, the more you can lower your tax burden. But there's a few things to keep in mind:
If you’re already using an FSA, you may not have enough room left to add the full amount of therapy. In that case, take the maximum if you can.
Otherwise, let’s assume you can bump up your FSA contribution by:
First, let’s make sure you’re in the right place. Some things to keep in mind:
If you’re already contributing, you may not have enough room left to add the full amount of therapy to your HSA. In that case, take the maximum if you can.
Otherwise, let’s assume you can bump up your HSA contribution by:
I think you can save $ on your taxes.
There’s a tax trick that might be of use to you: if your medical bills are more than 7.5% of your Adjusted Gross Income in 2018, you may be able to deduct them.
Your Adjusted Gross Income is your household income minus any deductions, like student loan payments or mortgage interest.
A few things to know:
You may be able to save $ on your taxes by claiming your medical expenses.
Averaged over a year, each therapy session could cost you: $
A year of therapy could cost you: $
But you’ll have saved $ by using your insurance and $ on your taxes.