Deductible Medical Expenses
When it comes to income tax deductions, medical expenses can provide significant relief. To qualify as deductible, these expenses must meet certain criteria established by the IRS. Below is a structured overview of what medical expenses are deductible.
1. Qualified Medical Expenses
- Payments to Healthcare Providers: Costs paid for medical treatment, surgery, and diagnosis by licensed physicians, dentists, and other medical professionals.
- Prescription Medications: Out-of-pocket expenses for prescribed medications can be deducted.
- Hospital Services: Expenses for inpatient hospital care, including surgery and room charges.
- Long-Term Care: Premiums for long-term care insurance might be deductible under certain limits.
- Preventive Care: Routine check-ups, vaccinations, and screenings are eligible deductions.
- Medical Equipment and Supplies: Costs related to items required for medical diagnosis, treatment, or care, including wheelchairs and prescribed braces.
2. Transportation Costs
Expenses incurred while traveling to and from medical appointments can also be deductible. This includes mileage, public transportation costs, and even parking fees.
3. Limitations and Thresholds
It's crucial to note that the total amount of deductible medical expenses must exceed 7.5% of your adjusted gross income (AGI) to qualify for deductions.
Conclusion
Understanding what medical expenses are deductible can help you maximize your tax refund. Keep thorough records of all medical costs throughout the year to ensure you take full advantage of this beneficial tax deduction.