Tax Questions on Medical Deductions

Deduct medical expenses on Schedule A of IRS Form 1040.

Few people enjoy paying taxes. As such, you should take special care to use the available deductions and credits to ensure you are not needlessly paying more than necessary. The medical expense deduction is one that taxpayers often do not take because they are unclear of the requirements and calculations. Taking the deduction requires some record-keeping that may be difficult for some people.

What Are Medical Expenses?

According to the Internal Revenue Service, medical expenses include the costs incurred for the prevention, diagnosis, treatment and cure of disease, as well as treatments for the functionality of the body. These expenses include payments to medical practitioners, such as doctors, dentists and surgeons, as well as those offering legal medical services. They also include the costs of supplies and equipment used for the purposes of providing medical services.

Whose Medical Expenses Can You Deduct?

If you itemize your deductions on Schedule A of Form 1040, you may deduct the medical and dental expenses for yourself, your spouse and your dependents, as well as any decedents. Decedents are family members that have passed away that incurred deductible medical expenses before death.

How Much Is the Medical Expense Deduction?

You may deduct medical expenses that exceed 7.5 percent of your adjusted gross income. For example, if your AGI is $100,000, you may deduct any medical expenses that exceed $7,500. If your medical expenses were $8,500, the deduction would be $1,000. If your medical expenses were $7,000, you would not be able to take the deduction.

What Expenses Are Not Included in the Deduction?

According to the IRS, “medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation.” Therefore, items such as cosmetic surgery, electrolysis, health club dues, teeth whitening and maternity clothes are not deductible.

How Do You Claim the Deduction?

To claim the deduction, you must itemize your deductions on Schedule A of IRS Form 1040. Enter the total amount of allowed medical and dental expenses on Line 1 of Schedule A. You will then multiply your AGI by 7.5 percent to determine the amount of expense that is not deductible. Subtract the reduction from your total medical expenses to calculate the total amount of the deduction allowed.

References

• Internal Revenue Service: Topic 502 - Medical and Dental Expenses
• Internal Revenue Service: Publication 502 (2009), Medical and Dental Expenses