Tax Season Tip: Deducting Your Medical Expenses from Your Taxes

As we get into the full swing of tax season, we wanted to run down medical deductions that most people are not aware of. You may deduct only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income, but keep reading! That may seem impossible for most people, but with these deductions, that total might not be as far off as you think.

So, sit down and take a look at this list of deductions. These medical deductions may not all apply to you, but if you’ve had some medical expenses in the last year, please don’t overlook these possible deductions. They may be able to really reduce your tax bill, and all of us can use a little help these days.

Medical expenses of everyone listed on your tax return. It’s not just your personal medical expenses that can be deducted. The medical and dental bills for you, your spouse and your dependents all count toward reaching the allowable deduction limit. In some cases, you may be able to deduct some medical expenses for your parents, even if they aren’t considered your dependents.

The costs of alcohol- or drug-abuse treatments. If you have been in substance abuse treatment, your expenses can be deducted.

Travel expenses to and from medical treatments. If you have been travelling to and from your medical treatments, the IRS allows you to deduct your travel expenses based on a cents-per-mile allowance. For 2009, you are allowed to deduct eligible medical travel at 24 cents per mile. In addition, the actual fare for a taxi, bus, train, or ambulance can be deducted.

Medical conference expenses. Medical conference expenses related to the chronic disease of yourself, your spouse, or your dependent (if the costs are primarily for and essential to the medical care) are deductible. However, you may not deduct the costs for meals and lodging while attending the medical conference.

Medically necessary costs prescribed by a physician. If there are costs associated with treatments that your doctor has prescribed for you, you may be able to deduct those expenses. For example, if your doctor tells you to buy an air purifier for your home in order to help your respiratory problems, the costs of that air purifier and the additional electricity to run it may be deductible from your tax return.

For more tips, visit us at MyHealthCafe.com.

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