Tax day is just around the corner. Maybe you’ve filed your return already, or maybe you’re planning on getting yours in right under the April 15th wire. But are you confident that you’re taking all the deductions you’re entitled to? For instance, did you know that you can deduct certain medical and dental expenses for you and your family? If healthcare costs were a major headache for you in 2012, there’s a chance you can recoup some of what you spent in your tax return.
Here are the IRS requirements for medical tax deductions:
- The medical expenses must be for you, your spouse, and any dependents.
- These total expenses for the year must exceed 7.5 percent of your adjusted gross income.
- To claim these deductions, you must itemize them.
- Qualifying expenses include insurance premiums for a medical care policy or a qualified long-term care policy (not premiums considered paid under an employer-sponsored plan or premiums you paid under your employer-sponsored policy under a premium conversion policy).
- If you’re self-employed and have a net profit for 2012, you may deduct insurance premiums for a medical care policy or a qualified long-term care policy, but you cannot take this deduction for any month in which you were eligible to participate in any subsidized health plan maintained by your employer, your former employer, your spouse’s employer, or your former spouse’s employer.
- You may deduct any prescribed medicine or drug.
- Your total medical deductions must be reduced by any reimbursements or deductible medical expenses(whether paid to you or a hospital/doctor).
A full list of the deductible medical expenses can be found on the IRS website, but here are some lesser known examples:
- Air conditioner necessary for relief from allergies or other respiratory problems (less any increase in the value of your home resulting from installation of air conditioning)
- Birth control pills prescribed by a doctor
- Contact lenses, including equipment and materials for using contacts
- Laboratory fees
- Lodging expenses while away from home to receive medical care in a hospital or medical facility
- Medical conference admission costs and travel expenses for a chronically ill person or a parent of a chronically ill child to learn about new medical treatments (except for the cost of meals and lodging while attending the conference)
- Special education: tuition for sending a mentally impaired or physically disabled person to a special school that has resources to relieve the disability
- Weight loss program, if recommended by a doctor to treat a specific medical condition or to cure any specific ailment or disease
- Wig for the mental health of a patient who has lost his or her hair due to a disease
To learn more about which deductions you may be eligible for, read more on the IRS website or consult a tax professional.
Sources: irs.gov and turbotax.intuit.com