There is good news this year on the medical front. Medical expenses may be expensive, but uncovered medical expenses are deductible when you itemize your medical deductions, to cut back on the cost. Before you get too excited, along with the good news comes the bad.
In the past you could deduct medical expenses that exceeded 7.5% of your AGI, however, now the threshold has gone up to 10%. This means your expenses have to be higher for you to take advantage of this deduction or if you are over 65, you won’t have to worry about this change.
Often overlooked medical expenses
Travel costs – Mileage rate deduction recently increased to 24 cents per mile
Long term care insurance premiums – Policies must qualify
Medical costs prescribed by your doctor – This includes home improvements and medical equipment
Admission and travel to a medical conference for a chronic illness – You, your spouse, or one of your dependents have to suffer from the illness
Alcohol and drug abuse treatments – Also, includes approved stop smoking programs
Costs for service animals
Weight loss programs – Must be medically necessary, not just to improve your appearance. Health club dues count too.
Wigs for cancer patients
Recliner for cardiac patients
Reconstructive breast surgery for breast cancer patients
Laser surgery for corrective vision
Orthopedic shoes for sufferers of foot conditions
Cosmetic surgery for those with deformities
Remedial reading for dyslexic children
Attendants for blind or deaf students
These medical expenses apply for your spouse and dependents too. Your parents can fall under this category if you provide them with more than half of their support. Additionally, if your dependent died during the year, you can still claim their expenses.
As long as you plan carefully when paying medical expenses, you will be able to save money during tax time. When you file with TurboTax discount, they will ask all of the right questions to make sure you get all of the deductions that you qualify for and the biggest refund. The free TurboTax refund calculator allows you to know the amount of money you should be getting back in your tax refund.
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