Did you know that your medical expenses must exceed 7.5% of your adjusted gross income (AGI) for them to be deductible? For instance, if your AGI is $98,000 and your medical expenses total $5,000, they are not deductible.  However, if your medical expenses total $9,000, you can deduct $1,650 if you choose to itemize on your tax return.

Even though you may have insurance that covers a portion of your medical bills, you can still deduct the amounts you pay out-of-pocket.  If you keep up with your receipts throughout the year you may be surprised to find out how much you actually spent on health care.

What qualifies as a deductible medical expense?

- Ambulance transport services
- Attendant or service animal for a physically disabled person
- Rehabilitation programs for alcoholism or drug addiction
- Dentures and prosthetic limbs
- Physician visits including psychologists, eye doctors, dentists, chiropractors, etc.
- Special exercise or diet programs if prescribed by a doctor to treat a specific condition
- Eye surgery including LASIK and radial keratotomy
- Fertility enhancement (In vitro fertilization or reversal of a prior sterilization surgery)
- Hospital, hospice and nursing home care
- Health insurance premiums and long-term care insurance
- Lab fees and X-ray services
- Mileage and lodging if person is required to travel for specific treatment
- Prescription drugs and insulin
- Wheelchairs, motorized scooters, crutches, hearing aids, braces and other medical aids
- Glasses and contact lenses
- Oxygen tanks, humidifiers, special air conditioners, etc. if prescribed by a doctor
- Chairs or mattresses prescribed by a doctor to treat specific conditions
- Expenses associated with the special education of a mentally or physically disabled person
- Travel by parents to visit their child at a special education facility (not meals/lodging)
- Wigs for patients who have hair loss caused by a disease or treatment of a disease
- Cosmetic surgery if necessary to improve a birth deformity, a disease, or an accident
- Installation of a pool if swimming is prescribed by a doctor for therapy or treatment
- Medical conferences related to the chronic illness of the taxpayer, spouse or dependent

What does not qualify as a deductible medical expense?

- Cosmetic surgery to improve appearance, including hair transplants and hair removal
- Funeral expenses
- Health club dues
- Life insurance and guaranteed payments for days in the hospital
- Marijuana, even if it is prescribed by a doctor
- Maternity clothes
- Non-prescription nicotine patches or gum
- Teeth whitening, even if it is performed by a dentist

If you have any questions or need clarification, please contact our office.