How to Claim Medical Tax Deductions

Difficulty: Moderately Easy

Instructions

Step 1

In order to claim a medical tax deduction, you need to itemize your taxes on the IRS form 1040.
Step 2

You are allowed to claim a medical tax deduction for all medical expenses that exceed 7.5% of your adjusted gross income (AGI). For example, if your AGI is over $40,000, then you would have to pay more than $3000 in medical expenses during the year to qualify. Also, you can only deduct the amount that is in excess of the 7.5%. So, using the previous example, if you had $4000 in medical expenses, you would be able to deduct $1000 from your taxes.
Step 3

While 7.5% of your income seems like a lot of money, there are several things that can be deducted that you might not have thought of. Here are some examples:
*Health Insurance premiums as long as they were not paid with pre-tax dollars
*Medical and Dental checkups and procedures
*Contacts, glasses and needed supplies such as saline solution and enzyme cleaner
*Laser eye surgery
*Birth control pills
*Expenses traveling to and from medical treatments
*Co-payments
*Home pregnancy tests, fertility treatments and sterilization
*Buying, training and maintaining a guide dog
*Prescription medications
*Drug or alcohol rehabilitation, including lodging and meals
*Acupuncture and Chiropractic visits to correct a specific condition
*Lead-based paint removal
*Weight loss program prescribed by a doctor and used to treat a specific illness
*In-home patient care
*Nursing home or special home for the disabled, in some circumstances
*Surgery to correct a deformity caused by a birth defect or injury
*Education for a person with a disability, such as learning Braille, sign language or a program for a child with extreme behavior problems. The education must be recommended by a doctor and performed by a qualified specialist.
Step 4

You can claim modifications to your home or car to accommodate someone with a disability as a medical tax deduction. The modification must be for a medical condition and not for architectural or aesthetic reasons. If the modification improved the value of your home, you must subtract the added value from the cost of the improvement. Some examples of things that can be deducted from your taxes are widening doorways and installing ramps for wheelchair access, installing railings, lowering counters and cabinets, and grading the yard for easier access.
Step 5

Some things that you cannot deduct are:
*Vitamins
*Funeral expenses
*Life or disability insurance premiums.
*Maternity clothes
*Teeth whitening
*Controlled substances
*Cosmetic surgery simply to improve your appearance
*Medical savings account
*Expenses paid using pre-tax dollars, such as a flexible spending account
*Health club dues or gym memberships
*Over the counter medications
*Items for personal use such as toothbrushes and soap
*Childcare to allow yourself or a spouse to get medical care
Step 6

There is a complete list on the IRS website; see the link in the resources section. When determining what qualifies as a medical tax deduction, remember that the treatment must be for a specific condition and not just for general health. For anything that is not specifically prescribed by a doctor, you may want to call the IRS helpline or consult with a tax professional to be sure.
Step 7

Gather all of your receipts and bills together to calculate your medical tax deduction. If you haven’t been saving these throughout the year, your doctor, insurance company and pharmacy will have copies. They will probably require you to fill out a record request form and show your ID. You cannot deduct the portion of your medical bills paid for by insurance or anything that was reimbursed and the medical expenses must have been paid for by Dec 31. So if you went to the hospital in December, but didn’t pay the bill until January, you cannot include this amount in your medical tax deduction for the current year. Remember to include all of the medical expenses for yourself, your spouse if you file jointly, and any dependents. In some cases, you may be able to include expenses paid on behalf of a parent.
Step 8

Many medical expenses cannot be planned, but if possible, arrange for major medical procedures to occur in the same year to maximize your medical tax deduction. For example, if you know you are going to have a baby during the year, schedule your laser eye surgery and your child’s braces as well. In December, fill all of your prescriptions and purchase extra supplies such as saline solution and blood sugar test kits. If you had a medical procedure, but the bill won’t arrive until after December 31, prepay it so that you can add this amount to your medical tax deduction for the current year.
Step 9

Claiming medical tax deductions can allow you to get some relief from high medical bills. This article is not meant to replace professional advice, but to act as a starting point to maximize your medical tax deduction. The tax laws can be confusing so if you are at all unsure about what qualifies as a deduction, consult with a tax professional or call the IRS helpline at 1.800.829.1040.