Are Prescription Medications Deductible?
Yes, prescription medications can be deductible under the category of Medical and Dental Expenses on your tax return. To qualify for this deduction, the expenses for prescription drugs must exceed 7.5% of your adjusted gross income (AGI) for tax years prior to 2021 and 10% for subsequent years.
It's crucial to maintain proper documentation for all medical expenses, including receipts for prescription medications. Over-the-counter medications are generally not deductible unless prescribed by a doctor.
You must itemize your deductions on Schedule A of your IRS Form 1040 to claim these expenses. This can be beneficial if your total eligible medical expenses narrow down to a significant amount.
Always consider consulting with a tax professional to ensure you are maximizing your deductions and accurately reporting your expenses, as tax laws and guidelines can change.
In summary, prescription medications are deductible, but it’s essential to follow the requisite conditions and maintain detailed financial records to substantiate your claims.