Taxpayers can deduct eligible medical expenses that exceed 10% of their adjusted gross income on a federal tax return. This includes medical, dental, and vision care expenses for themselves and dependents. Other allowable deductions include travel expenses, alternative medical therapies, and hearing exams, but not cosmetic surgery or over-the-counter medications.
To reduce the level of income tax payable, taxpayers can use certain medical deductions. On a federal tax return, eligible medical expenses that exceed 10% of the taxpayer’s adjusted gross income may be deducted. Allowable deductions include medical, dental, and vision care expenses.
In addition to your own expenses, you can also take medical deductions for your dependents. A person is considered a dependent if they are a relative who lives with you and you provide at least 50 percent of their financial support. The person must also be a US citizen to qualify as a dependent.
To make sure you get all the medical deductions you’re entitled to, keep receipts for all medical expenses incurred for yourself or on behalf of your children. If you’re self-employed, you can also include the cost of your health insurance premiums in your calculations. Be sure to include the cost of any lab tests, eye exams, and dental checkups not covered by insurance in your calculations. If you need glasses or contact lenses, their cost may be deducted from your income taxes.
Other expenses that are allowed as medical deductions include the costs of dental implants, ambulance fees, and hearing exams. Expenses incurred traveling to and from medical appointments can also be deducted. If you need to go out of town to seek medical care, you can deduct these expenses as well. Keep track of the cost of mileage, your oil and gas expenses, and parking to include on your tax return.
The cost of alternative medical therapies to treat medical conditions may be tax deductible. Alternative treatment options include acupuncture, aromatherapy, and massage therapy. If you’re not sure if your treatment would qualify for a medical tax deduction, ask your doctor for guidance. Your accountant or tax preparer will also be able to give you some advice on this.
Some types of expenses do not qualify as medical deductions, and you should also be aware of this fact. You will not be able to deduct expenses that have been reimbursed to you through your health insurance policy. Over-the-counter medications are also not covered. If you have expenses related to cosmetic surgery, you cannot use them as medical deductions on your income tax form. Any allowable deduction must be deemed medically necessary to be accepted.
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