Can You Deduct Medical Expenses on Your Taxes?
Yes, you can deduct medical expenses on your taxes, but only to the extent that they exceed a certain threshold.
In the United States, you can deduct your medical and dental expenses on your federal income tax return if they exceed 7.5% of your adjusted gross income (AGI) for the tax year. However, starting in 2021, the threshold will increase to 10% of your AGI.
Medical expenses that can be deducted include, but are not limited to, the following:
- Payments made to doctors, dentists, and other medical professionals
- Payments made for hospital services, including room and board
- Payments for prescription medications and insulin
- Payments for medical supplies and equipment
- Payments for transportation to and from medical appointments
- Payments for long-term care services, including nursing home care and home health care
- Payments for health insurance premiums, including Medicare premiums
- Payments for certain types of dental treatment
It is important to note that in order to deduct medical expenses, you must itemize your deductions on your tax return. This means that you may need to keep careful records of your medical expenses throughout the year in order to accurately calculate your deduction.
In addition, there are some limitations and exceptions to the deductibility of medical expenses. For example, you cannot deduct expenses that were reimbursed by insurance or any other source. You also cannot deduct expenses that were paid for with funds from a health savings account or flexible spending account.
If you are unsure about whether a particular expense can be deducted, or if you need assistance calculating your deduction, it may be helpful to consult with a tax professional or licensed attorney.
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