With the high cost of medical care more people are now able to deduct on their tax return unreimbursed medical expenses. If you plan to claim a deduction for your medical and dental expenses you must be able to itemize your deductions on Schedule A and your medical and dental expenses must exceed 10 percent of your adjusted gross income (the threshold is 7.5% if you or your spouse is age 65 or older and this exception will apply through 2016.)
Even if your medical and dental expenses were incurred in a previous year and paid in the current year, you can still deduct them in the current year as long as you have accurate records of those expenses. Include medical and dental expenses you paid for yourself, your spouse and your dependents. There may be some exceptions that apply, such as, expenses reimbursed by insurance or other sources don’t qualify as a deduction.
Deductible medical and dental expenses must be mainly for diagnosing, treating, easing or preventing disease. Medical expenses include…
- Doctors and dentists
- Prescription medicines
- Qualified long-term care services
- Medical insurance premiums
- Eyeglasses, equipment and supplies
- Limited amounts for qualified long-term care insurance
- Transportation costs to and from medical care, the deduction is 24 cents per mile for 2014.
No double dipping. If you have paid your medical and dental expenses with monies from your Health Savings Account or Flexible Spending Arrangements, you can’t deduct the amounts paid from those plans.