You can deduct medical and dental expenses on your tax return, but there are a few key rules which you have to follow:
You can only claim medical expenses you paid for if you itemize deductions, file a Schedule A, on your federal tax return.
The tax benefit you go to realize is when your total amount of qualified medical cost is more than 10 percent of your AGI(Adjusted Gross Income) if you or your spouse is 65 or older.
The qualifying expenses you can include are most medical and dental costs paid for yourself, your spouse and your dependents. These include:
- The cost of diagnosing, treating, easing or preventing disease
- The costs paid for insurance premiums covering medical care
- The costs paid for prescription drugs/and or insulin
- Some long-term care insurance costs
- If any of your medical expenses are paid with funds form an HSA (Health Savings Account) or a FSA (Flexible Spending arrangements), you cannot claim a tax deduction for those expenses. The amounts paid with funds from those accounts are usually treated as tax-free.
- Some travel costs you pay for medical care man be deductible. This includes costs for public transportation, ambulances services, tolls and/or parking fees. For the use of your car, you can deduct either the actual cost or the standard mileage rate for medical travel.
Please contact your tax preparer for any questions you may have regarding the deduction of medical and dental expenses.