What Medical Expensesare Tax deductible? 2021, 2022

The whole list is available in IRS Publication 502, but here's a summary of what qualifies as a medical cost.

  • Doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and other medical practitioners get payments.
  • Care in hospitals and nursing homes
  • Acupuncture
  • Addiction treatment options, including smoking cessation
  • Weight-loss programs for doctor-diagnosed conditions, such as obesity (but diet food and health club membership fees normally do not count)
  • Insulin and prescription medications
  • Admission and transportation to medical conferences about ailments that you, your spouse, or your dependents suffer from (meals and accommodation do not count)
  • Dentures, reading glasses or prescription glasses, contacts, hearing aids, crutches, wheelchairs, and service animals are all acceptable.
  • Transportation expenditures to and from medical appointments
  • Insurance premiums for medical treatment or long-term care insurance that are not paid for by your employer and must be paid for out of pocket after taxes
  • Other medical expense deduction rules
  • You may only include medical costs paid within the fiscal year.
  • You cannot include costs for which you were repaid (for example, if your insurance covered the bill, it is not deductible).

What isn't tax deductible?

  • Funeral or burial costs
  • Medications available over-the-counter
  • Cosmetics, toiletries, and toothpaste
  • Vacations
  • The majority of cosmetic surgery
  • Nicotine chew and patches are available without a prescription.

How to Make a Claim for Medical Expenses

Itemize your deductions on your taxes.

Instead of claiming the standard deduction, you must itemize. This may need extra time spent on tax preparation, but if your standard deduction is smaller than your itemized deductions, you should itemize nevertheless to save money. If the standard deduction exceeds your itemized deductions, take the standard deduction to save time.

Schedule A should be used.

Schedule A enables you to determine your medical expense deduction by doing the arithmetic. Your tax software will guide you through the process.

Is it worthwhile to deduct medical expenditures from your taxes? Take into account your filing status.

Filing separately if you're married might result in a larger medical-expenses deduction, but you risk losing other tax advantages. Assume your spouse had $6,000 in medical costs last year. If you file jointly and have a total AGI of $100,000, only the part of your medical expenditures that exceed 7.5 percent of that — or $7,500 — is deductible. In this case, you cannot deduct any of your $6,000 in medical expenses.

Assume when you file your taxesyour adjusted gross income (AGI) is $75,000, while your spouse's AGI is $25,000. Because the medical expenditures are your spouse's responsibility, he or she may deduct up to 7.5 percent of the $25,000 AGI, or $1,875. That equates to a $4,125 tax deduction if you file individually.

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