Let’s be honest, no one likes to pay medical bills, even if you have good medical insurance. But did you know that you can claim your medical expenses as a deduction when it comes to your tax return? And if your medical bills are above 7,5 percent of your annual income? This type of deduction applies both to your spouse and dependent’s medical costs. So, if your medical bills are above 7,5 percent of your annual income, then you can confidently deduct that cost.
It Is Not Just Medical!
In addition to your medical costs, such services as dental care and vision are also deductible. So, you can confidently deduct expenses concerning eye exams, contacts, glasses, and everything referring to dental health. Additionally, you can also deduct costs such as preventative care and surgeries, psychological treatment, and the costs of medical devices.
There are some aspects that you should consider before starting this process. That’s because there are several costs that are not tax-deductible. For example, you can not claim deductions for any costs that you reimbursed for. Or if you are using a medical pre-payment plan or any other reimbursement plans which reduce your expenses, you cannot claim those costs as medical deductions. Also, you cannot claim cosmetic surgery costs as medical deduction. Same goes for your everyday health supplies like vitamins, pain relievers, or any other health supplies.
Itemize Your Deductions, and You Can Deduct Medical Expenses
As we have mentioned before, you can enjoy the benefits of the medical expense deduction only when you qualify for itemized deductions on your taxes. Thus, your itemized deductions such as home mortgage interest, state income taxes, property taxes, and deductible medical expenses should be more than the standard deduction. You cannot combine the standard deduction and a medical expense deduction concurrently. But, in that case, if you are self-employed, you can confidently deduct your health insurance.
Don’t Forget About Your Bills
Unfortunately, you can only deduct those medical costs which are paid during the tax year, when you file your tax return. Also, you cannot claim your previous expenses or future expenses. All your medical expenses, paid by credit card, will be counted as being paid during the year and will be considered deductible.
For 2020, the average medical mileage rate is 17 cents per each mile. Dental appointments or emergency visits are deductible. If you are not aware of these rules, contact Prestige Auditors and we will answer all your questions concerning taxes. Additionally, we will choose the best deduction options that you are eligible for. Tired of paying endless taxes? Then give us a call and our professional tax experts will solve all your tax issues in a matter of days.