It’s no longer a secret that medical expenses have become very expensive, especially because new illnesses are being discovered more often than ever and require new medications and equipment to meet up with their treatments. To keep up with these expenses, you must consider some tax-deductible medical expenses so that you can reduce your out-of-pocket medical spending.
You have to keep in mind that not all medical expenses are tax-deductible. For a medical expense to be deductible, it has to meet certain criteria set by the IRS, that is, the Internal Revenue Service. So, the expense must be related to the diagnosis, cure, mitigation, treatment, or prevention of a disease or condition for it to be deductible.
Also, it must be an expense that is medically necessary and not just to maintain your general health. So, in this well-detailed article, we will consider and discuss those medical expenses that are tax-deductible. Stick around as we get started.
What are Tax Deductibles?
Tax deductibles are those expenses that can be removed from your income that are taxable. This helps reduce the amount of tax you now pay.
Let’s say, for example, that if you have $10,000 in taxable income and $2,000 in deductible expenses, then your taxable income would be reduced to $8,000. In other words, you would only be taxed on $8,000 instead of $10,000. Do you understand?
Great! Now, let’s talk about what expenses are considered medically necessary.
What are Medical Expenses that are Taxable?
According to the Internal Revenue Service (IRS), the body that ensures that taxes are paid by citizens, medical taxable expenses are those expenses that are for the diagnosis, cure, mitigation, treatment, or prevention of disease.
It is safe to say that medical taxable expenses don’t include those expenses that are not prescribed by a medical expert. Such as vitamins, being on a diet, etc.
At this juncture, we can now take a look at those medical expenses that are tax-deductible.
Medical Expenses that are Tax Deductible
The following are tax-deductible medical expenses:
- Doctor’s Visits
- Hospital Stays
- Prescription Medications
- OTC Medications
- Ambulance Rides
- Dental Care
- Vision Care
- Chiropractic Care
- Alternative Medicine
- Hospital Equipment
- Nursing Care
- Medical Research Studies
- Home Health Care
- Ambulance rides
- Home health care
- Nursing home care
- Medical supplies
- Durable medical equipment
- Nutritional supplements
- Cosmetic procedures
- Gym memberships.
Overview of Tax-Deductibles Medical Expenses Listed Above
1. Doctor’s Visits
Seeing a doctor for medical reasons is a necessary medical routine and the cost is considered tax deductible.
2. Hospital Stays
Most times, patients have to stay in the hospital and that is necessary to ensure a good body check-up and overall well-being.
3. Prescription Medications
Let’s talk about prescription medications. These are considered necessary medical care because they are prescribed by a doctor to treat a specific condition. So, they are tax-deductible.
4. OTC Medications
If a doctor or a medical expert prescribes medication for you over the counter, it will be considered tax-deductible because it has now become necessary.
There are two types of surgery. Medical surgery and cosmetic surgery. Medical surgeries are considered tax deductibles while cosmetic surgeries are regarded as non-deductibles.
6. Ambulance Rides
Ambulance ride is tax deductible. this is because they are considered essential in the transportation of a patient to the hospital.
7. Dental Care
Dental care is regarded as medically necessary if it is used to treat a specific dental condition, such as a cavity or gum disease.
8. Vision Care
Are they prescribed by a doctor? If yes, then they are tax deductible. Vision care is considered medically necessary if it is used to treat a specific vision condition, such as nearsightedness or farsightedness.
9. Chiropractic Care
Chiropractic care is considered medically necessary if it is used to treat a specific musculoskeletal condition, such as back pain or neck pain.
They are deductible as long as they are prescribed by a doctor.
In a situation where someone suffering from depression or anxiety gets treatment, then it will be regarded as a tax-deductible.
Therapy sessions, both in-person and virtual, are deductible. They are usually recommended by a medical expert.
11. Alternative Medicine
Alternative medicine, such as massage therapy is considered medically necessary if it is used to treat a specific condition or recommended by a doctor.
12. Hospital Equipment
Hospital equipment is considered medically necessary if it is used for a specific medical purpose. This includes things like walkers, crutches, oxygen tanks, and home hospital beds.
Transportation to and from medical appointments is deductible, as long as the appointments are for medically necessary treatments.
14. Nursing Care
Nursing care is considered medically necessary as long as it is provided by a licensed nurse and is used to treat a specific medical condition. However, nursing care that is provided by a family member is not deductible.
15 Medical Research Studies
Medical research studies are considered medically necessary if they are conducted to find new treatments for specific medical conditions.
However, research studies that are not related to a specific medical condition or that are conducted for marketing purposes are not deductible.
16. Home Health Care
Home health care is considered medically necessary if it is provided by a licensed professional and is used to treat a specific medical condition.
It can include things like skilled nursing care, physical therapy, and occupational therapy.
17. Ambulance Rides
Ambulance rides are considered medically necessary if they are used to transport a patient to or from a hospital or other medical facility.
However, it is important to note that ambulance rides for non-medical reasons, such as transport to a nursing home or rehab facility, are not deductible.
18. Home Health Care
Is it provided by a medical professional? If yes, then it is deductible.
19. Nursing Home Care
Nursing home care is deductible if it is provided in a licensed facility and is used to treat a specific medical condition.
20. Medical supplies
Medical supplies are deductible if they are prescribed by a medical expert and are necessary for the treatment of a specific medical condition.
Examples of such supplies include items like crutches, wheelchairs, and other durable medical equipment.
21. Durable medical equipment
Durable medical equipment is any equipment that is prescribed by a doctor and is used in the home to treat a specific medical condition.
This includes things like hospital beds, crutches, walkers, oxygen tanks, and even mobility scooters.
The cost of vaccinations is deductible if they are prescribed by a doctor and are medically necessary. This includes things like the flu shot, the shingles vaccine, and even travel vaccinations.
23. Nutritional supplements
Nutritional supplements that are prescribed by a doctor for a specific medical condition are deductible.
24. Cosmetic procedures
Some cosmetics are tax-deductible if they are prescribed by a doctor or medical practitioner.
25. Gym memberships
In most cases, gym membership is not deductible. Unless it is highly recommended by your doctor for certain medical conditions.
How to Calculate Deductible Medical Expenses
To calculate your deductible expenses,
- Firstly, you need to add up all of your medical expenses for the year.
- Then, you subtract any medical expenses that were reimbursed by insurance or another source.
The remaining amount is your deductible medical expenses.
It is important to know that to be eligible for a deduction, your expenses must exceed a certain percentage of your adjusted gross income (AGI). That percentage is 7.5% for most taxpayers as of the time of writing the article.
FAQs on Medical Expenses that are Tax-Deductible
Is a gym membership deductible if I have a medical condition?
Is a gym membership deductible if I have a medical condition? No, gym memberships are not deductible, even if they are recommended by a doctor.
Can I deduct the cost of dental work?
You can deduct the cost of dental work if it's necessary to treat a specific medical condition. General dental care, such as cleanings, are not deductible.
Can I deduct the cost of a vacation if it was recommended by my doctor?
No, the cost of a vacation is not deductible, even if it was recommended by your doctor.
Can I deduct the cost of alternative treatments, like acupuncture or massage therapy?
Yes. If it was prescribed by a doctor.
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Medical expenses can be a great way to reduce your tax liability, but there are some important rules to keep in mind.
It’s always a good idea to consult with a tax professional before making any decisions about your taxes.
Also remember, even if an expense is not deductible, it may still be a worthwhile investment in your health and well-being!
We at GETIMMUNIFIED say good luck to you.