Should I track medical expenses for tax purposes?
Some of the most common questions we receive are about the deductibility of medical expenses, and whether it's worth tallying up the figures.
What medical expenses are deductible? (not an all-inclusive list)
- Diagnosis and Cures
- Annual Physical Exams
- Medicine, Treatment and Prevention
- Dental Treatments
- Medical Equipment, Supplies and Diagnosis Devices
- Ambulance and Other Medical Professional Transportation
- Travel expenses to and from treatment
- Insurance payments
- Physical Therapy
- Fertility treatments
What medical expenses are NOT deductible? (not an all-inclusive list)
- Cosmetic surgery (elective)
- Non-FDA Approved Medicine
- Expenses related to a funeral
In order to take the deduction...
- You must itemize deductions
- Medical & dental expenses must exceed 7.5% of adjusted gross income.
- Expenses paid must be for yourself, your spouse, and/or your dependents.
If your medical expenses do not meet ALL three of the above points, you needn't keep track of the figures, as it won’t help your tax return.
What records should be kept?
- Name and address of each medical care provider
- Amount and date of each payment
- Description of care received
- Who received the care
- Nature and purpose of expense
Expenses paid from Health Savings Accounts or Flexible Spending Arrangements cannot be itemized as medical expenses since they've already received a benefit when the accounts were funded.
Feel free to contact us if you have questions about the medical expenses deduction...we’re here to help!!