How should sales tax be documented in dental billing?

Sales tax should be clearly itemized on patient invoices, showing both the taxable amount and the tax rate applied. Proper documentation ensures compliance with state regulations.

Can D9985 be used for clinical procedures?

No, D9985 is specifically for non-clinical procedures related to sales tax. Clinical procedures have their own specific CDT codes.

What should be done if sales tax is applied incorrectly?

If sales tax is applied incorrectly, the billing should be adjusted to reflect the correct amount. It's important to review state regulations and correct any discrepancies promptly.

Are there any exemptions to using D9985?

Exemptions depend on state laws. Some states may not require sales tax on certain dental services or products, so it's essential to check local tax laws.

D9985

Sales Tax - CDT Code Guide

Adjunctive General Services/Non-clinical procedures

Overview

CDT code D9985 is used to account for sales tax in dental billing. While not a clinical procedure, this code is crucial for ensuring that the financial aspects of dental services are accurately documented and compliant with local tax regulations. Dental practices may encounter this code when they need to apply sales tax to certain non-clinical products or services. Understanding when and how to use D9985 helps maintain transparency and accuracy in billing practices, ensuring that both the dental practice and patients are aware of any additional costs associated with dental care.

When to Use This Code

When applying sales tax to dental products sold directly to patients.
In states where dental services are subject to sales tax.
When billing for non-clinical items that require tax documentation.
During financial audits to ensure compliance with state tax laws.
To separate taxable and non-taxable items on patient invoices.

Documentation Requirements

Include a detailed invoice showing taxable and non-taxable items.
Document the applicable sales tax rate based on local regulations.
Ensure the patient's billing statement reflects the sales tax amount.
Maintain records of sales tax collected for state reporting.
Verify that the sales tax application complies with state laws.

Billing Considerations

When using D9985, ensure that the sales tax is applied correctly according to state laws. Some states may exempt certain dental services from sales tax, so it's important to verify local regulations. This code does not have frequency limitations but should be used consistently with applicable transactions. Common modifiers are not typically applicable, but accurate documentation is crucial for compliance.

Related CDT Codes

D9999 D9990 D9991 D9992 D9993

Frequently Asked Questions

No, sales tax requirements vary by state. Some states exempt certain dental services from sales tax, while others may apply it to specific non-clinical items.

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