How Much in Medical Expenses Can You Claim on Federal Taxes?
Medical expenses can make up a significant amount of your annual budget, particularly if you don't have insurance or have several emergencies. Fortunately, you may be allowed to deduct some of those costs on your taxes. The amount that you can deduct depends on whether you are an employee or self-employed, your income and whether or not you itemize your deductions.
Other People Are Reading
-
Self-Employed Insurance
-
If you are self-employed, you can use your insurance costs for yourself and your family to offset your self-employment gains. This deduction allows you to write off your medical insurance as an adjustment to income so that you can claim it without itemizing your deductions. In addition, you do not have to have the costs exceed a certain percentage of your income before you can deduct it. However, if you are eligible to participate in an employer health insurance plan, such as if you work part time as self-employed and part time for an employer, you cannot take advantage of this deduction.
Medical Expenses Deduction
-
The medical and dental expenses deduction permits you to deduct qualifying expenses in excess of 7.5 percent of your adjusted gross income, but only if you itemize your deductions. For example, if you have an adjusted gross income of $29,000, you would be able to deduct only the qualifying expenses exceeding $2,175. For example, if you had $3,000 in qualifying expenses, your deduction for the year would be $825. If you only had $2,000 in qualifying expenses, you would not be able to deduct any of them.
-
Qualifying Expenses
-
Only expenses that you incur for medical, dental and vision care that you do not receive reimbursement for can be included in the medical and dental expenses deduction; reimbursed expenses cannot be deducted. Costs such as doctor's visits, eye exams and trips to the dentist can be included. You can also include prescription drugs, surgeries and other treatments. However, elective procedures such as cosmetic surgery are generally not permitted to be included.
Itemizing Requirements
-
You must itemize your deductions to claim the medical and dental expenses deduction. Each year, you have the option to claim either the standard deduction or to itemize your deductions. If you elect the latter, you cannot claim the standard deduction. Accordingly, when making your decision, you should add the value of your itemized deductions, including the medical and dental expenses. If this total exceeds the value of your standard deduction, you should claim the medical and dental expenses deduction, as well as any other itemized deductions for which you qualify.
-
References
- Photo Credit Stockbyte/Stockbyte/Getty Images
