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If you pay for medical or dental expenses, you may be able to get a tax deduction for costs not covered by your insurance. Here are 7 facts about claiming these deductions.........
1. You must itemize deductions. You can only claim medical & dental expenses for costs not covered by insurance if you itemize deductions on your tax return. You cannot claim medical and dental expenses if you take the standard deduction.
2. Deduction is limited. You can deduct medical & dental expenses that are more than 7.5 percent (this number has changed to 10% for tax years 2013 and beyond) of your adjusted gross income.
3. Expenses paid in the tax year. You can include medical & dental costs that you paid in the current tax year, even if you received the services in a previous year.
4. Qualifying expenses. You may include most medical or dental costs that you paid for yourself, your spouse and your dependents. Some exceptions and special rules apply. Contact me for more information.
5. Costs to include. You can normally claim the costs of diagnosing, treating, easing or preventing disease. The costs of prescription drugs and insulin qualify. The cost of medical, dental and some long-term care insurance also qualify.
6. Travel is included. You may be able to claim the cost of travel to obtain medical care. That includes the cost of public transportation or an ambulance as well as tolls and parking fees. If you use your car for medical travel, you can deduct the actual costs, including gas and oil. Instead of deducting the actual costs, you can deduct the standard mileage rate for medical travel.
7. No double benefit. Funds from Health Savings Accounts or Flexible Spending Arrangements used to pay for medical or dental costs are usually tax-free. Therefore, you cannot deduct expenses paid with funds from those plans.
Please contact me if you have any questions on deducting medical & dental expenses...I'm here to help!!
**Information taken from IRS Tax Tip Publications