Learn the answer to “Are medical expenses tax deductible?”
READY, SET, FILE. Homewatch Caregivers in Northbrook, Illinois wants to make sure the clients and families have all the information necessary to make it as easy as possible to complete their taxes with minimal stress while residents in the Chicago and the Northshore suburbs are getting ready to file their taxes for 2018. Have you ever heard anyone say that they enjoyed paying medical bills? Or it was fun? I am pretty sure the answer to both of those questions is, no! Debt that acquires from medical bills can cause high levels of financial stress for many, even if people have put aside savings to help offset the cost when insurance does not cover the expenses. Tax relief can also offset the costs allowing you to lower you tax burden so that you pay less income tax. Can you deduct and claim medical expenses? Yes, you can claim and deduct expenses on taxes. The IRS permits you to deduct the portion of your medical expenses that exceed 7.5 percent of your adjusted gross income (AGI).
18 Medical Expenses You Can Deduct from Your Taxes!
As referenced in the December 12, 2018 article “Taxes 101” by Terence Loose, The IRS defines medical care expenses to include payments for medical treatment, medical supplies, medical equipment, diagnosis mitigation and prevention of disease. Examples of medical expenses approved by the IRS include:
- Fees to doctors, surgeons, dentists, chiropractors, psychiatrists, psychologists and other providers of professional services
- Laboratory fees that are part of medical care
- Medical insurance premiums beyond the portion your employer pays and that are included in box 1 of your Form W-2
- Long-term care and long-term care insurance premiums, up to certain limits
- Inpatient alcohol and drug treatment programs
- Ambulance service
- Dental services like dentures, fillings and braces
- Weight-loss programs for a specific disease diagnosed by a physician
- Modifications, like wheelchair ramps, to your home for medical care
- Equipment and supplies for nursing mothers such as breast pumps
- Medical expenses incurred by fertility treatments, pregnancy test kits and sterilization
- Insulin and prescription drugs
- Medical equipment and supplies like glasses, contacts, hearing aids, crutches and similar medical devices
- Guide dogs for the blind or deaf
- Cosmetic surgery required because of a disease or accident
- Removing lead-based paint from a damaged surface within the reach of a child who has or has had lead poisoning
- Costs of attending a conference concerning a chronic condition of yours, your spouse’s or your dependent’s
- Stop-smoking programs, but not non-prescription drugs like nicotine gum or patches
The IRS website indicates that deductible “medical expenses also include amounts paid for qualified long-term care services” This means that Home Care Services provided by a Licensed Agency, including Homewatch CareGivers are a deductible expense.
Please keep in mind that this list is not a complete list of all medical expenses that could qualify for tax deductions. If it is not included in the list, it does not mean it might not still qualify as long as it meets the standards for the medical definition. For a complete list of deductible medical expenses. You can also check IRS Publication 502 for answers to your tax questions.