If you’re itemizing deductions, the IRS generally allows you a medical expenses deduction if you have unreimbursed expenses that are more than 10% of your Adjusted Gross Income for tax years after 2018 (The floor was 7.5% of your adjusted gross income for tax years 2017 or 2018). You can deduct the cost of care from several types of practitioners at various stages of care. Show Review changes to medical expense deduction from tax reform. To understand what costs are covered as a deduction, read on. What medical expenses can I deduct?For any medical condition, it includes the unreimbursed cost of:
If you want to deduct medical expenses, they must alleviate or prevent a physical or mental defect or illness. You can’t deduct expenses that simply benefit general health, like vitamins or a vacation. You can deduct these medical expenses:
You usually can’t deduct premiums you pay for certain types of policies that aren’t tied to the actual cost of the medical care you received. These policies include those that:
Contributions you make to a health savings account (HSA) aren’t medical expenses. For employer-sponsored plans, HSA contributions are made pre-tax. Otherwise, contributions are deducted “above-the-line” as adjustments to income. Medical expenses paid with HSA distributions are not deductible. If you’d like to learn more about HSAs, see Form 8889 instructions at www.irs.gov. Are medical expenses deductible in the year paid or incurred?You can include only the medical and dental expenses you paid in the current tax year. It doesn’t matter when you received the services. The payment dates for expenses paid by the following methods are as follows:
Whose medical expenses can I include on my return?You can deduct medical expenses for anyone who qualifies as your spouse or dependent when either:
If you’re divorced, you can deduct any qualifying bills you pay for your children as a medical expense. This applies even if your former spouse claims your children as dependents. You can also deduct medical expenses you pay for any other person who:
What are some expenses not considered deductible medical expenses?Nondeductible expenses include:
To learn more, see Publication 502: Medical and Dental Expenses at www.irs.gov. Questions about medical expense deductions?Have additional questions about deductions for medical expenses or need help filing your return? Our Tax Pros speak the tricky language of taxes and are committed to helping you better understand your taxes. Make an Appointment with one of our Tax Pros today. |