Medical expenses
may be claimed as itemized deductions on your tax return.
If you paid a lot of medical expenses during the year, you may be entitled to a reduction in your federal income tax liability. This article will outline when you can deduct medical expenses on your tax return.
Itemized Deduction
Medical expenses are an itemized deduction, which means you can only claim them if you don't claim the standard deduction. Itemized deductions, including for medical expenses, are claimed on Schedule A to Form 1040.
What Expenses Can You Claim?
Medical expenses are broadly defined, which means you can claim almost any health care-related fees that you incur during the year, including doctor visits, prescription medications, surgery fees, hospital fees, admission and transportation fees, and rehabilitation fees. According to the IRS website, you can claim expenses incurred "for the prevention or alleviation of a physical or mental defect or illness."
What Expenses Can't You Claim?
You can't claim general health expenses, such as gym memberships, everyday toiletries and hygiene products, and over-the-counter medicines. You also can't claim expenses that are purely for cosmetic services, such as cosmetic braces or facial surgery.
How Much Can You Claim?
You first have to add up all your medical expenses for the year, then calculate 7.5 percent of your adjusted gross income. You may then deduct the amount of expenses that exceeds 7.5 percent of your adjusted gross income. So if your adjusted gross income is $10,000, and you had $4,000 in medical expenses, you can claim $3,250 in medical expenses deduction [$4,000 - ($10,000 x 0.075)].
What About Insurance Premiums?
If you pay your own insurance premiums, and you are not reimbursed for those payments, then you can include the insurance premiums in your calculation of total medical expenses.
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