What Medical Expenses Can Be Written Off on Taxes?

By Marlo Sollitto, AgingCare.com

Many caregivers and their elderly parents rack up thousands of dollars every year in medical expenses. Items not covered by Medicare, co-pays and deductibles, even the amount of gas used to get to doctor’s appointments.

Depending on the total amount you’ve spent, you might be able to deduct those medical expenses from your taxes. However, you have to have an awful lot of medical expenses in order to take the deduction.

There are a number of hurdles that must be overcome for a caregiver to deduct medical expenses for the person to whom the care is provided,” says Mark Luscombe, CPA, JD, LLM, and Federal Tax Analyst at CCH (cchgroup.com) and noted expert on the U.S. tax code. “The person receiving the care must meet certain support, income, relationship, citizenship and other tests.

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“The medical expenses must be of the type approved by the IRS as qualifying for the medical expense deduction,” Luscombe says.

To qualify for the deduction, the total cost of your unreimbursed medical expenses must exceed 7.5% of your adjusted gross income. For example, if your adjusted gross income is $50,000, then the first $3,750 of medical expenses don’t count.

“If all the requirements can be met, the caregiver can get significant tax benefits from writing off medical expenses incurred on behalf of the person receiving care.”

So take the time to add up the amount medical expenses you (or your elderly parent) cost out-of-pocket during 2011. If its enough, you can deduct those expenses on the tax return.

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What Medical Expenses Can Be Written Off on Taxes? originally appeared on AgingCare.com.

Here is a list of medical expenses that can be deducted from your taxes:

Acupuncture

Adapters to TV sets and telephone for hearing impaired

Ambulance

Artificial limb

Bandages

Braille books and magazines

Capital improvements to your home to accommodate a disability

Car – Cost of special equipment so disabled person can drive

Chiropractor

Contact lenses plus wetting and cleaning solutions

Crutches

Dental care

Dentures

Diagnostic devices

Prescription drugs

Eyeglasses

Eye surgery

Hearing aid

Hospitalization

In-home health care

Insulin

Insurance premiums, co-pays and deductibles for health insurance, dental and eye insurance, and long-term-care insurance.

Lifetime care fees (percentage of fees paid under lifetime contract with a continuing care retirement community)

Long-term-care services

Meals (while staying in hospital or similar facility)

Medicare Part B premiums

Nursing home and assisted living costs

Nursing services

Surgeries

Optometrist

Oxygen

Prescription drugs and medicine (Drugs from Canadian and foreign pharmacies are not deductible.)

Psychiatric care

Stop smoking program

Therapy

Transplant

Transportation to receive medical care – mileage, parking, tolls

Weight-loss program (if part of treatment for specific disease or condition, such as obesity)

Wheelchairs

Wig (if hair is lost due to medical condition or treatment)

X-rays

A complete list of deductible medical expenses is available in IRS Publication 502: Medical and Dental Expenses.

The most common way people treat their health costs on their tax forms is by claiming an itemized deduction, on Schedule A of the 1040, for out-of-pocket medical expenses.

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What Medical Expenses Can Be Written Off on Taxes? originally appeared on AgingCare.com.

10 comments

Donna Hamilton
Donna Hamilton3 years ago

Thanks for the info.

Teri P.
Teri P.3 years ago

Thank you

Sheri P.
Sheri P.3 years ago

i've always deducted my medical expenses, didn't realize it had to be a certain percentage. i guess it was since i had a cpa doing my taxes and i trust he knows the laws.

Debbie Crowe
Debbie Crowe4 years ago

I wonder if they changed the law?!? I was having Insurance premiums taken out of my check and what I read said that we 'could NOT take them as a deduction.' Hmmmmmmm.

Emily S.
Emily S.4 years ago

Good to know

David F.
David F.4 years ago

Let us take an example of Texas. The "Penny Health" is quite popular in Arizona. It provides so many offers for the low income people.

Christine C.
Christine C.4 years ago

Good info, thanks