Medical expenses paid in excess of 10% of a taxpayer’s adjusted gross income are deductible as itemized deductions when filing Schedule A. Deductible medical expenses include those paid for the taxpayer as well as their spouse and dependents. In addition, certain medical expenses paid on behalf of certain non-dependents may be deductible under certain circumstances. Do you know what expenses qualify as deductible medical expenses?

Payments to or for the following are deductible medical expenses:

• Doctors, dentists, eye doctors, chiropractors, psychologists, physical therapists and acupuncturists
• Addiction programs, fertility enhancements, smoking cessation programs and laboratory fees
• Cosmetic surgery (if necessary to improve a deformity related to congenital abnormality, accident or disease) and eye surgery for nearsightedness
• Nursing home care and hospital care
• Prescription medicine and drugs
• Medical equipment (e.g., crutches, wheelchairs, diagnostic devices, aids for those with various disabilities), oxygen and hearing aids
• Ambulatory service and transportation to obtain medical care
• Health insurance premiums (except those paid through an employer plan with pre-tax dollars or claimed as a self-employed health insurance deduction) and Medicare premiums.

In addition to the preceding partial list of deductible medical costs, under certain situations capital expenditures to modify your home, long-term care insurance and continuing-care facility costs can also be deductible.

Let Flexible Accounting Services of the Triangle assist you in maximizing your medical expense deduction. Contact us today and we will help you identify the medical expenses that you can deduct on your tax return.