From jenniferwalz@sbcglobal.net
Good news!
Tax Deductible Medical ExpensesA whole host of medical and dental expenses are tax deductible, according to current tax laws.
The government defines tax-deductible medical
expenses as those that are associated with the "costs of diagnosis, cure, mitigation, treatment, or prevention of disease." 1
The government also allows you to deduct dental expenses and the costs of equipment, supplies, and diagnostic devices.2
According to IRS guidelines, here's a partial list of some medical expenses that are tax deductible:
Acupuncture Artificial teeth Chiropractor Dental care including X-rays, fillings, braces, and extractions Eye surgery Insurance premiums Laboratory tests Operations that do not involve cosmetic procedures Psychiatric care Psychologist Sterilization Stop-smoking programs
The
IRS does specify that any deductions you take are for medical expenses
that actually treat or prevent an illness. Medical expenses for general
health, like vitamins, supplements and vacations, are not eligible.
Are Special Foods and Supplements Tax
Deductible?
Tax deductions for special dietary needs are more regulated.
The IRS states that you "cannot
include the cost of diet food or beverages in deductible medical
expenses because the diet food and beverages substitute for what is
normally consumed to satisfy nutritional needs."3
If, however, you are on a special diet that has been prescribed by a doctor for a specific medical condition, you may
be able to deduct the cost of special dietary foods for the amount in which they exceed the normal cost of food.
Still, you may be able to deduct the cost of special foods if they meet all of the following requirements4:
Your foods alleviate or treat an illness. Your physician agrees with your need for the special food. Your foods do not satisfy "normal" nutritional needs.
If
your foods meet all the requirements, you can deduct the amount you pay
for special foods that is over and above the cost of a regular diet. Make sure that you talk to your doctor
about the diet and the role it plays in your health, especially if you
have a chronic disease or illness that the diet addresses.
As
for nutritional supplements, the IRS states that in order to be tax
deductible, nutritional supplements must be prescribed by a doctor for
a specific medical condition.
If
you have questions about these foods and nutritional supplements, we
encourage you to talk to your physician and your medical advisor to
find out if your health expenses can be included as a tax-deductible
medical expense.
It
might take some time and effort to document your expenses related to
your health, but in the long run, it could be worth it.
The General Guidelines
You
can deduct only the amount of your medical and dental expenses that is
more than 7.5% of your adjusted gross income (Form 1040, line 38).
So if your adjusted gross income is $30,000, then 7.5% is $2250. If your deductible medical expenses are more than $2250, then
you can deduct them.
Healthy Tax Deductions
Are you ready to take the
tax deductions that help your health?
Get
familiar with all the ins and outs of tax deductible medical expenses
in IRS Publication 502, and make sure to ask your accountant or
financial advisor to go over any new deductions with you in detail.
Sources:
IRS Publication 502.
http://www.irs.gov/pub/irs-pdf/p502.pdf
2 ibid.
