Even if you itemize your deductions on schedule A, you may not realize that you can deduct your medical expenses if they are in excess of 7.5% of your Adjusted Gross Income (AGI). Say you made $50,000 total for your AGI, you’d have to have over $3,750 in medical expenses in order to deduct anything over that off your tax return. That may seem like a lot, but there are many things that can be considered a medical expense.
Qualifying medical expenses include:
Insurance premiums for medical care
Fees paid to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, etc. for medical care.
Payments for hospital services and nursing services
The cost of participating in a weight-loss program for treatment of a disease such as obesity or hypertension as diagnosed and ordered by a doctor. The cost of special diet foods, however, is not deductable.
The cost of prescription-only drugs, excluding insulin
Admission and transportation to a medical conference relating to a chronic disease you, your spouse, or your dependent has. The costs of meals and lodging, however, are not deductable.
The cost of dentures or false teeth, prescription eyeglasses or contact lenses, laser eye surgery, hearing aids, artificial limbs, crutches, wheelchairs, and guide dogs for the vision or hearing impaired
Travel expenses to and from medical treatments. The 2011 rate deduction is $0.19 per mile.
Medically necessary costs prescribed by a physician, such as a humidifier to alleviate breathing problems or a special mattress for someone with arthritis, can be at least partially deducted.
The cost of Lamaze classes or therapeutic exercise classes as prescribed by a physician
Inpatient treatment for alcoholism, drug addicting, or smoking cessation, including meals and lodging at a treatment facility, can be deducted.
The cost of Braille reading material for the vision impaired can be deducted if the Braille version is more costly than the regular printed version. The price difference can be deducted.
Improvements to your home that are specifically related to a medical condition can be deducted. This includes: constructing ramps, widening doorways and hallways, installing support bars, lowering or modifying kitchen cabinets and equipment, installing lifts, modifying smoke detectors, modifying stairways, adding handrails. Only improvements for medical conditions can be deducted. Aesthetic improvements do not qualify.
Fees paid to a Christian Science practitioner for medical care
Prevention and alleviation of dental disease including: regular cleaning by a hygienist, special sealants and treatments to prevent tooth decay, x-rays, braces, extractions, and dentures
Diagnostic devices such as blood sugar test kits
Costs of keeping an intellectually or developmentally disabled dependent in a special home as recommended by a physician
Lodging in a hospital or similar facility can be included if the lodging is essential for medical care, if the medical care is provided by a doctor in a licensed medical facility, the lodging is not lavish or extravagant, and the lodging does not provide a significant element of personal pleasure. The amount of expenses for lodging cannot exceed $50 per night per person. If a parent is staying with a sick child in the hospital, the deduction can be $100 per night.
Meals in a hospital can be deducted provided that the care being received is inpatient care. If a parent is staying with a child in the hospital, their meals cannot be deducted but the meals served to the child can be.
Medical expenses for psychiatric care and psychoanalysis can be deducted.
The costs of supporting a mentally ill dependent at a medical facility can be deducted.
Medical expenses incurred for physical therapy
You can deduct expenses relating to donating an organ such as a kidney.
You can deduct the cost of a wig provided that it was purchased at the advice of a physician for the mental health of a patient who has lost all their hair as the result of a disease.
Not included are expenses that benefit general and/or overall health such as vitamins and supplements.
To deduct medical expenses for a dependent, they only have to be a dependent at the time the expenses were incurred rather than for the entire year.
If you and your spouse file separate tax returns, you can only deduct medical expenses for which you actually paid.
Keep a record of all your medical expenses. Include the payment information, transportation information, and the care received.
If you can get receipts for all your medical expenses, it will make things easier come tax time.
