Medical expenses have grown 200% over the last few years. These expenses can really be costly, especially if you have unforeseen emergencies that are not fully covered by your insurance. Hence, anybody living with kids should keep reading! The Internal Revenue Service allows taxpayers some relief, making some of these expenses partly tax-deductible. However, certain restrictions apply.
The IRS allows you to deduct qualified medical expenses that exceed 10 percent of your adjusted gross income for the year. Your adjusted gross income is your taxable income minus any adjustments to income such as deductions, contributions to a traditional IRA and student loan interest. If you are age 65 or older, you may deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income. This exemption for older taxpayers is temporary and will be phased out in 2016.
Medical expenses are deducted on Schedule A.
Medical expenses included under this type of plan are those defined in Section 213 of the Internal Revenue Code. As a general rule, medical care includes amounts paid for diagnosis, cure, mitigation, treatment, or prevention of a disease. Appropriate expenses include, but are not limited to:
|Health Insurance Premiums
||Dental Care Fees
||Vision Care Fees
||Chiropractor Care Fees
||Psychiatric Care Fees
||Medical Supplies Costs
Please note that medical expenses for which you are reimbursed, such as by your insurance or employer, cannot be deducted. Further, the IRS disallows expenses for cosmetic procedures. Taxpayers are also not allowed to deduct the cost of non-prescription drugs.