Can You Deduct Medical Expenses on Taxes?
If you have a significant amount of medical expenses during the year, or if you are self-employed and pay for your own coverage, you may be entitled to tax deductions on those expenses. However, only certain medical expenses qualify and to claim the deduction, none of those expenses can be reimbursable.
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Qualifying Medical Expenses
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The medical expenses eligible for deduction from your income taxes range from medical to dental to vision care. Routine checkups, preventive care or treatments such as surgery, therapy or prescription drugs qualify as deductible medical expenses. The IRS allows insulin, but no other nonprescription drugs, as a qualifying expense. You can also add the cost of any medical insurance premiums paid out of pocket.
Self-Employment Insurance
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You can claim a deduction for the amount of your medical insurance premiums if you are self-employed and do not have access to insurance through your employer or your spouse's employer. According to the IRS, the deduction cannot exceed your self-employment income, but can include the premiums you pay for yourself, your spouse and your dependents. You are eligible for this deduction without itemizing, since you can claim it as an adjustment to income.
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Medical and Dental Expenses Deduction
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Even if you were not self-employed, you can claim the medical and dental expenses deduction; and this deduction includes all your medical expenses, not just your medical insurance costs. However, notes the IRS, you must itemize your deductions --- limited to your medical costs exceeding 7.5 percent of your adjusted gross income. Any amount claimed in the self-employment insurance deduction cannot be used in calculating your deduction for medical and dental expenses.
Reporting Your Medical Deductions
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To claim either deduction, you must file Form 1040. The self-employment health insurance deduction is listed on line 29 as of the 2010 tax year. This amount, combined with your other adjustments to income, reduces your taxable income before your standard or itemized deductions are considered. You must report medical and dental expenses on Schedule A as an itemized deduction. As of the 2010 tax year, list total itemized deductions on line 30 of Form 1040.
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