Tax advice at cocktail parties aside, deducting your medical expenses is not as easy as it sounds. There are a lot of rules, exceptions, and questionable logic.
The first hurdle to overcome is the amount you spent on deductible medical treatments and supplies. In order to deduct these expenses, they need to come out to at least 7.5% of your adjusted gross income. For most of us, that alone is disqualifying — thankfully.
For those of us who might be hovering near the magic number, it may be possible to find some deductions you have been missing all along.
- Building ramps: Renovations made to your home to accommodate a disability are deductible.
- Hotel stays: If seeking treatment in a different city, lodging is deductible.
- Service animals: Everything from food to veterinary care is deductible.
- Tutoring for your child: If your child has a learning disability, the cost of hiring a tutor is deductible.
- Wigs: If you’ve lost your hair to chemotherapy, a wig can be deductible — but your doctor will have to “prescribe” it for you.
- Weight loss: If your doctor determines your weight is a threat to your health, various treatments are deductible.
- Transportation: Buses, taxis, trains, plane tickets, and ambulance transportation to and from medical providers, pharmacies, and therapists are deductible.
- Dental care: Teeth cleaning, X-rays, fillings, braces, and dentures are all deductible.
So we’ve identified some additional deductions, but what do we do with this knowledge? Medical expenses need to be itemized on Schedule A of your 1040 next year. Talking to your accountant or other tax professional is the only way to make sure your deductions are 100% above board.
If you don’t think you are up to the task of gathering everything for Schedule A, don’t be afraid to ask for help — contact us to learn more.