Thursday, March 8, 2012

Some Surprising Medical Deductions You Don’t Want to Miss!

It’s true—unless you itemize your deductions on Schedule A and your medical expenses are more than 7.5% of your adjusted gross income (AGI), you can’t deduct them on your tax return.

But, what some folks don’t know is that there are quite a few allowable deductions that fall into that category—some that may be very surprising to you, but deductions you don’t want to ignore.

Most people understand the normal deductions, including fees for:

·         Diagnosis
·         Cure
·         Mitigation
·         Treatment
·         Prevention
·         Equipment
·         Supplies
·         Diagnostic devices

But, the IRS also considers the following deductions allowable Tax Topics - Topic 502 Medical and Dental Expenses:

·         Acupuncturists
·         Eye doctors
·         Occupational therapists
·         Some weight-loss programs, foods, and health care memberships if prescribed by your doctor
·         Transportation costs to and from medical care—19 19 cents per mile from January 1 to June 30 2011 and 23.5 cents per mile from July 1 to Dec 31 2011
·         Amounts paid for qualified long-term care services
·         Limited amounts paid for any qualified long-term care insurance contracts
·         The cost of a medical conference (registration fees) if you suffer from a related chronic disease
·         Medical insurance premiums, but not pre-tax salary contributions you make to your employer-sponsored health insurance plan
·         Amounts you pay – if not covered by Social Security – for Medicare B supplemental insurance, Medicare D insurance, and Medicare A premiums
·         Even if your former spouse claims your children as dependents, you can still deduct any qualifying medical bills for which you pay

Lastly, don’t forget about those contributions you make to a health savings account (HSA). While not considered medical expenses, you can reduce your income by deducting 100% of your qualifying HSA contributions even if you don't itemize deductions.

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