Medical expenses include payments for the diagnosis, cure, mitigation, treatment or prevention of disease, or payments for treatments affecting any structure or function of the body.
Deductible medical expenses may include but are not limited to the following:
•Payments of fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists and nontraditional medical practitioners
•Payments for in-patient hospital care or residential nursing home care, including the cost of meals and lodging charged by the hospital or nursing home
•Payments for insurance premiums you paid for policies that cover medical care or for a qualified long-term care insurance policy covering qualified long-term care service
•Payments for insulin and payments for drugs that require a prescription
•Payments for the cost of transportation to the locations where medical care is received
•Payments for false teeth, reading or prescription eyeglasses or contact lenses, hearing aids, crutches, wheelchairs and for guide dogs for the blind or deaf
Non-deductible medical expenses may include but are not limited to the following:
•Payments for BOTOX Cosmetic injections
•Payments for non-prescription drugs
•Payments for social activities, even if recommended by a doctor for taxpayer’s general health
Can I deduct my medical expenses?
If you itemize your deductions for a taxable year on Form 1040, Schedule A, Itemized Deductions, you may be able to deduct expenses you paid that year for medical and dental care for yourself, your spouse and your dependents. You may deduct only the amount of your total medical expenses that exceed 10% of your adjusted gross income or 7.5% if you or your spouse is 65 or older. The 7.5% limitation is effective only from January 1, 2013, to December 31, 2016, for individuals age 65 and older and their spouses.
Example: John’s Adjusted Gross Income was $80,000, and he spent $9,000 on medical expenses. He and his spouse were both under age 65 in 2015. Because his expenses exceeded 10% of his AGI, he can take the deduction for the amount above $8,000. His deduction is $1,000.