Tax Deductions for Medical and Dental Expenses

Medical Deductions and ExpensesThe IRS allows you to deduct a certain amount of medical expenses if you itemize deductions.

Medical Deductions and ExpensesThe IRS allows you to deduct a certain amount of medical expenses if you itemize deductions.

Qualified medical deductions are expenses you paid during the tax year for yourself, your spouse, or your dependents.

Qualified medical deductions are expenses you paid during the tax year for yourself, your spouse, or your dependents.

Medical expenses are the costs associated with the diagnosis, cure, mitigation, treatment, or prevention of any disease recognized by the medical community (this includes Chiropractic practices and Christian Science), and the costs for treatments affecting any area or function of the body. Medical costs include the expenses of equipment, supplies, and diagnostic devices needed for the purposes listed above. They also include dental expenses.

Medical expenses are the costs associated with the diagnosis, cure, mitigation, treatment, or prevention of any disease recognized by the medical community (this includes Chiropractic practices and Christian Science), and the costs for treatments affecting any area or function of the body. Medical costs include the expenses of equipment, supplies, and diagnostic devices needed for the purposes listed above. They also include dental expenses.

Below is an alphabetical list of qualified medical deductions that might apply to you (more information on medical deductions). Please note that this list is not definitive or all-inclusive.

Below is an alphabetical list of qualified medical deductions that might apply to you (more information on medical deductions). Please note that this list is not definitive or all-inclusive.

*You may deduct expenses incurred for a weight loss program if that weight loss was conducted after the diagnosis of a specific illness by your doctor.

*You may deduct expenses incurred for a weight loss program if that weight loss was conducted after the diagnosis of a specific illness by your doctor.

**You may deduct transportation expenses that are incurred primarily for medical reasons, e.g. bus fare to and from the hospital, gas consumed on your way to a medical facility. You may also include the cost of meals if they were purchased at a hospital, or similar institution, where you were staying for medical care.

**You may deduct transportation expenses that are incurred primarily for medical reasons, e.g. bus fare to and from the hospital, gas consumed on your way to a medical facility. You may also include the cost of meals if they were purchased at a hospital, or similar institution, where you were staying for medical care.

Generally, medical care premiums can be included in your calculations of medical expenses. However, there are certain medical insurance premiums that you cannot include when calculating your medical expenses for tax purposes:

Generally, medical care premiums can be included in your calculations of medical expenses. However, there are certain medical insurance premiums that you cannot include when calculating your medical expenses for tax purposes:

If you are self-employed, you may be able to deduct 100% of the amount you pay for health insurance for yourself, your spouse, and dependents as an adjustment to income (a non-itemized deduction).

If you are self-employed, you may be able to deduct 100% of the amount you pay for health insurance for yourself, your spouse, and dependents as an adjustment to income (a non-itemized deduction).

Be aware that the Affordable Care Act (Obamacare) also affects your tax return and health insurance premiums.

Be aware that the Affordable Care Act (Obamacare) also affects your tax return and health insurance premiums.

You can only deduct medical expenses that are above 7.5% of your Adjusted Gross Income (AGI). This is called an “AGI floor”. This amount will apply to 2017 and 2018 Tax Returns.

You can only deduct medical expenses that are above 7.5% of your Adjusted Gross Income (AGI). This is called an “AGI floor”. This amount will apply to 2017 and 2018 Tax Returns.

For example:
Your AGI is: $40,000.
7.5% is: $3,000
Your medical expenses are: $2,500

For example:
Your AGI is: $40,000.
7.5% is: $3,000
Your medical expenses are: $2,500

In this case, you could not deduct your medical expenses because your expenses are not more than 7.5% of your adjusted gross income.

In this case, you could not deduct your medical expenses because your expenses are not more than 7.5% of your adjusted gross income.

For medical expenses that would have been deductible in an earlier Tax Year, you can amend a tax return.

For medical expenses that would have been deductible in an earlier Tax Year, you can amend a tax return.

There are certain medical expenses that are not deductible. These expenses include:

There are certain medical expenses that are not deductible. These expenses include:

You must subtract all reimbursements that you have received for medical or dental expenses from any source throughout the year from your calculation of total medical expenses.

You must subtract all reimbursements that you have received for medical or dental expenses from any source throughout the year from your calculation of total medical expenses.

If the cost of medical equipment or property was deducted from your taxes in a previous year and you sell that property in a later year for a profit you may have to record a capital gain. The taxable gain is the amount of the selling price more than the adjusted basis of the equipment or property.

If the cost of medical equipment or property was deducted from your taxes in a previous year and you sell that property in a later year for a profit you may have to record a capital gain. The taxable gain is the amount of the selling price more than the adjusted basis of the equipment or property.

Detailed information on medical and dental expense deductions

Detailed information on medical and dental expense deductions

Important: This tax credit expired on January 1, 2014. Though you will not be able to claim it on 2014 and later Tax Year returns, you may claim it on 2013 and prior Tax Year returns. The following information may be of use if you are preparing (or amending) a tax return for 2013 or another previous Tax Year. For Tax Year 2013, you must have enrolled into the HCTC program by or on October 1, 2013 in order to qualify for the credit.

Important: This tax credit expired on January 1, 2014. Though you will not be able to claim it on 2014 and later Tax Year returns, you may claim it on 2013 and prior Tax Year returns. The following information may be of use if you are preparing (or amending) a tax return for 2013 or another previous Tax Year. For Tax Year 2013, you must have enrolled into the HCTC program by or on October 1, 2013 in order to qualify for the credit.

If you are the recipient of Trade Adjustment Assistance (whether TAA, ATAA, or RTAA) or the recipient of Pension Benefit Guaranty Corporation (PBGC) payments, you should know about a credit designed to help you pay for health insurance. If you qualify, the Health Coverage Tax Credit may pay for up to 72.5% of your health insurance premiums. The HCTC is a refundable credit, so it will be paid to you even if you owe no tax at the end of the year.

If you are the recipient of Trade Adjustment Assistance (whether TAA, ATAA, or RTAA) or the recipient of Pension Benefit Guaranty Corporation (PBGC) payments, you should know about a credit designed to help you pay for health insurance. If you qualify, the Health Coverage Tax Credit may pay for up to 72.5% of your health insurance premiums. The HCTC is a refundable credit, so it will be paid to you even if you owe no tax at the end of the year.

To qualify for the credit, you must receive Trade Adjustment Assistance, or be age 55 or older and receive PBGC payments. Also, you must be enrolled in a qualified health plan and 50% or more of your health insurance premiums must not be covered by your employer(s). In addition, you must NOT be enrolled in any of the following programs:

To qualify for the credit, you must receive Trade Adjustment Assistance, or be age 55 or older and receive PBGC payments. Also, you must be enrolled in a qualified health plan and 50% or more of your health insurance premiums must not be covered by your employer(s). In addition, you must NOT be enrolled in any of the following programs:

In addition, to qualify for the HCTC, you must not be:

In addition, to qualify for the HCTC, you must not be:

The Health Coverage Tax Credit is claimed using Form 8885, Health Coverage Tax Credit. You may elect to receive the HCTC monthly instead of as a credit at tax time. If you choose monthly payments, you will send 27.5% of your insurance premium payment to the HCTC Program, which will add the remaining 72.5% of the premium payment and send it to your health plan. To enroll in the monthly program, you will need the HCTC Program Kit. After you apply for Trade Adjustment Assistance or begin receiving PBGC payments you should receive a copy of the HCTC Program Kit in the mail. This kit will guide you through the process of applying for monthly Health Coverage Tax Credit payments.

The Health Coverage Tax Credit is claimed using Form 8885, Health Coverage Tax Credit. You may elect to receive the HCTC monthly instead of as a credit at tax time. If you choose monthly payments, you will send 27.5% of your insurance premium payment to the HCTC Program, which will add the remaining 72.5% of the premium payment and send it to your health plan. To enroll in the monthly program, you will need the HCTC Program Kit. After you apply for Trade Adjustment Assistance or begin receiving PBGC payments you should receive a copy of the HCTC Program Kit in the mail. This kit will guide you through the process of applying for monthly Health Coverage Tax Credit payments.

For individual assistance with the HCTC, you can call the IRS Health Coverage Tax Credit hotline at 1-866-628-HCTC.

For individual assistance with the HCTC, you can call the IRS Health Coverage Tax Credit hotline at 1-866-628-HCTC.

Did you purchase health insurance through the Marketplace? You may qualify for the Premium Tax Credit, which you can use to help make health insurance affordable.

Did you purchase health insurance through the Marketplace? You may qualify for the Premium Tax Credit, which you can use to help make health insurance affordable.

See what other tax deductions you may qualify to claim on your tax return.

See what other tax deductions you may qualify to claim on your tax return.

Research & References of Tax Deductions for Medical and Dental Expenses|A&C Accounting And Tax Services
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