Itemized Deductions: Medical Expenses

Maximize your tax deductions by understanding the rules for medical expenses. This guide explains what qualifies as a deductible medical expense, including costs for diagnosis, treatment, prevention of disease, and necessary medical equipment. Learn about the threshold for deductibility, timing of expenses, and special considerations for long-term care and medicines. Essential for taxpayers seeking to optimize their medical expense deductions.

Highlights:

• Qualified Medical Expenses: Includes expenses for diagnosis, treatment, and prevention of diseases, as well as the cost of necessary medical equipment.

• Deduction Threshold: Medical expenses are deductible only if they exceed 7.5% of your adjusted gross income (AGI).

• Timing and Payment: Expenses are deductible in the year paid, regardless of when the services were provided.

• Special Rules for Medicines and Long-Term Care: Guidelines on deducting costs for prescribed medications, insulin, and long-term care services.

• Reimbursed Expenses: Expenses reimbursed by insurance or other sources are not deductible, and reimbursements exceeding medical expenses are taxable.