American Tax Service

Helping Americans File Their Taxes


How to know if Your Medical Expenses are Tax Deductible

Did you spend a ton of money on medical expenses last year? If so, you may qualify for the medical expense tax deduction. This means you must spend more than 10% of your AGI on medical expenses (7.5% if you are older than 65) to qualify. Therefore, go look at your finances now and see if you qualify.

medical expense tax deductionMedical Expenses You Can and Cannot Deduct

You can deduct your spouse, dependents, and your own medical expenses that qualify.

You are not able to deduct reimbursed medical expenses. You can only deduct medical expenses that you paid for 100% out of pocket for.

If you paid for your medical expenses with a credit card, but you won’t be paying the credit card bill until the next year, you won’t be able to deduct the medical expenses until the year that the bill is paid.

What Medical Expenses Qualify?

Deductible medical expenses include those that are required to diagnose, prevent, or treat an illness. Things such as doctor visits, dental exams, x-rays and prescriptions prescribed by your doctor fall under these categories. You cannot deduct things such as cosmetic surgeries for your personal benefit and teeth whitening’s. However, psychological and psychiatric expenses qualify as well as rehabilitation costs for drug and alcohol addiction recovery.

Other things deductible include expenses for special schools for disabled individuals, insulin, contact lenses and laser surgery, crutches, chiropractors, dentures, wheelchairs, treatment for sexual dysfunction, nursing homes, lactation expenses, lead paint removal, and approved smoking cessation programs.

Insurance Premiums

deduct health insurance premiumsIf you pay for your dental and health insurance premiums out of your pocket they may be tax deductible. This includes the amount paid for Medicare A coverage and Medicare B premiums. Long-term care insurance premiums can qualify depending on the maximums based and the age of the individual insured. However, premiums taken out of your paycheck pre-tax are not deductible.

Deducting Expenses at Tax Time

The good news is when you file your taxes with H&R Block you do not need to know the rules and guidelines. They will ask you the right questions to make sure that you are getting all of the medical expenses deductions that you are eligible for. File with H R Block online to receive your largest refund ever. Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail.


How to know if Your Medical Expenses are Tax Deductible
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