How Do We Claim Our Medical Expenses On Our Taxes?
Taxes can be daunting, panic-inducing even. Every year, we scramble to find the most deductions and credits to help lower our tax liability. For those of us lucky enough to accumulate a lot of deductions and/or credits, we may be getting a large chunk of change back. One often missed deduction that affects many families is the medical expenses deduction available on the Schedule A.
In order to be able to take the medical deduction on your taxes, you will need to determine if you will be able to itemize your deductions or if you will take the standard deduction. The only way to determine which method to use is to calculate your Schedule A deductions and see if they exceed the standard deduction for your filing type. If so, then itemizing will help you pay fewer taxes for the year you are filing.
When you take medical expenses on the Schedule A, you will list all of your medical expenses that qualify as a deduction. To find out which expenses qualify or not, a complete guide is offered by the government in Publication 502, available on the government website: www.irs.gov.
What Is And What Is Not
Generally speaking, insurance premiums paid for medical and dental expenses are deductible. Additionally, any co pay, or expense paid for necessary medical procedures or equipment are also deductible. However, items such as cosmetic procedures will not be considered deductible for tax purposes. To guarantee you stay within the government guidelines, consult a tax professional or read Pub. 502.
When you have determined all of the expenses you have which qualify as being deductible medical expenses on your taxes, you will use the Schedule A to figure out how much of that amount is deductible in your itemized deductions. You can only deduct expenses that exceed 7.5% of your adjusted gross income. The Schedule A will walk you through the process to determine the deductible amount to help you minimize your tax liability.