Tax Deductible Health Expenses

Medical deductions can save you money at tax time.

Taxpayers who itemize their deductions might be eligible to deduct qualifying medical and dental expenses. Understanding the eligibility requirements of medical expenses, and the and the degree to which they can be included on your return to offset your tax liability is relatively easy.

Significance

The IRS allows taxpayers to deduct the cost for preventive, diagnostic and other health treatments. You can also deduct the cost of prescriptions, hospital services, lab services, contact lenses as well as a variety of other costs directly connected with your treatment.

Limit Amount

You can only deduct the portion of your medical expenses that is above 7.5 percent of your adjusted gross income.

Filing

Tax deductible health expenses are claimed on the Schedule A tax form. Include the amount from your Schedule A on line 40a of Form 1040.

Eligibility

You can deduct medical expenses for yourself, your spouse or for anyone whom you claim as a dependent on your tax return.

Considerations

Taxpayers can also deduct costs related to travel to and from treatment as well as lodging, if the primary purpose of travel was medical related.

References

• Internal Revenue Service: Topic 502-Medical and Dental Expenses
• Internal Revenue Service: Publication 502-Medical and Dental Expenses