Medical Expenses

how to claim medical expenses on taxes

By William Perez. Tax Planning: U.S. Expert

William Perez has worked as a tax professional since 2004. He earned the enrolled agent designation by passing a comprehensive examination on federal taxes and maintains his credential by taking continuing education classes.

Itemized Deduction for Medical Expenses

Total medical expenses in excess of 7.5% of a person's adjusted gross income can be deducted as part of itemized deductions. Starting with the year 2013, the 7.5% threshold will increase to 10% of adjusted gross income.

Flexible spending accounts (FSA)

Qualifying Medical Expenses

Generally speaking, a medical expense will qualify for a tax deduction or tax-free reimbursement the expense is for the diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body.

Continue Reading Below

The following general types of expenses qualify:

  • Costs for medical services from physicians, surgeons, dentists and other medical professionals;
  • Costs for medications prescribed by a medical professional
  • Costs for medical devices, equipment and supplies prescribed by a medical professional (such as eyeglasses)
  • Costs for health and dental insurance
  • Costs for long-term care and long-term care insurance
  • Transportation and lodging costs for traveling to a health care facility, including mileage for driving for medical care at a rate of 16.5 cents per mile (for 2010).
Over-the-counter treatments, nutritional supplements, vitamins, and first aid supplies do not qualify as tax-deductible expenses, unless those items are prescribed by a medical professional. Controlled substances (such as cocaine and marijuana) are not tax-deductible either, even if prescribed.

Tax Planning for Medical Expenses

Source: taxes.about.com

Category: Bank

Similar articles: