Deducting Medical Expenses Is An Important Mission
According to the Internal Revenue Service, by itemizing your deductions on Form 1040, Schedule A, you might just be able to deduct your medical expenses for that taxable year, not just for yourself, but also for your spouse, your children and other dependents. You do, however, need to keep in mind that you can only deduct that amount of your medical expenses that are more than 7.5% of the adjusted gross income.
List of Deductible Medical Expenses
Before you can start deducting your medical expenses, you need to know which ones are deductible and which aren’t. Here is a brief list of which types of medical expenses would be deductible:
- Supplies & Equipment:
You can deduct expenses related to the purchase of medical equipment such as crutches, back supports, wheelchairs, etc. The basic premise is that if that piece of equipment was bought for medical reasons as prescribed by your doctor, it is a deductible medical expense.
- Dental Services:
Dental expenses are considered deductible medical expenses.
- Professional Services:
If you need to visit a medical specialist such as a dermatologist, OB/Gyn, psychologist, psychiatrist or even a chiropractor, expenses related to them would be considered deductible.
- Medical Treatments & Laboratory Tests:
Medical treatments such as childbirth, pre-natal care, blood tests, etc. are also considered deductible.
- Nursing Services:
It is best to clarify this service before you add it to your deductible list as it is a bit of a tricky factor. There are certain conditions that need to be met before you can classify nursing services as deductible medical expenses.
- Hospital Services:
If you have been hospitalized, then usually all services related to your stay are deductible.
- Insurance Premiums:
If you pay for your own insurance premium, then you can deduct that amount as an expense.
- Home Renovation:
If you have to renovate your home due to a medical condition, then the cost of the home renovation can be deducted. However, it is best to understand which parts of your home renovation would qualify as a medical expense.
- Travel & Stay:
If you have to travel and stay at a lodging for the purpose of medical treatment, then you can list these expenses as medical deductible expenses.
List of Non-Deductible Medical Expenses
Here is a list of medical expenses that you cannot deduct:
- Specific Expenses for Children
Certain expenses for your children are non-deductible. For example, if you get a babysitter to take care of your healthy baby, even if you are getting medical treatment at that time, you cannot deduct that expense. Maternity clothes, special lessons to improve your child’s physical or mental wellbeing also cannot be deducted as medical expenses.
- Cosmetic Services and Surgery
Any medical procedure you undergo that is deemed cosmetic is not deductible.
Memberships to health clubs or gyms are non-deductible. And if you haven’t been prescribed by your doctor to lose weight, then weight loss programs cannot be deductible.