Although medical expenses are deductible, very few taxpayers get to deduct them. Why not? Because you get to deduct such costs only to the extent that unreimbursed expenses exceed 7-1/2% of your adjusted gross income.
So if your AGI is $50,000, for example, the first $3,750 ($50,000 x 0.075) effectively don't count. Before you go through all of your doctors' bills and prescription receipts, do a quick calculation based on your income to make sure your time will be well spent.
Deductible medical expenses include doctors' and dentists' fees, chiropractors' fees, lab fees, contact lenses, glasses, prescription drugs and medical supplies.
- If you have a question about a particular medical expense, consult IRS Publication 502, Medical and Dental Expenses.
You can deduct the premiums you pay for health insurance coverage, unless your employer pays for your coverage through a payroll deduction using pre-tax dollars. If so, you've already received a tax benefit for your premium payments, so don't deduct those premiums on your return.
Turbotax Online can help you with your medical expense deductions. It offers advanced tools to help you pay the least amount of tax possible. It also provides an extremely accurate tax return to file with the Internal Revenue Service (IRS).
what are the allowable deduction for medical expenses when you can exceed the 7 1/2% threshhold. I have been told that OTC medicine and mileage to and from doctors visits is deductible....yes/no?...i know i will exceed the cap and want to know all the deductibles i am authorized...please
Posted by: Michael J. Bizzootto | October 28, 2008 at 08:17 AM
what are the allowable deduction for medical expenses when you can exceed the 7 1/2% threshhold. I have been told that OTC medicine and mileage to and from doctors visits is deductible....yes/no?...i know i will exceed the cap and want to know all the deductibles i am authorized...please
Posted by: Michael J. Bizzootto | October 28, 2008 at 08:19 AM