For tax years after 2018the IRS generally allows you to deduct medical expenses if you have unreimbursed medical expenses that total more than ten% of your Adjusted gross income. At different stages of care, you can deduct the cost of care from various practitioners.
Keep receipts if you or your dependents were hospitalized or had other expensive medical or dental expenses, as they could help you save money on your taxes. Here’s how the medical expense deduction works and how you can use it to your advantage.
How much can I deduct for medical expenses?
Taxpayers who have eligible and unreimbursed medical expenses totaling more than 7.5% of their adjusted gross income 2021 can deduct them on their 2022 tax returns. If your adjusted gross income is $40,000, anything over $3,000 in medical expenses, or 7.5% of your AGI, may be deductible.
This means that if you have $10,000 in medical bills, you may be able to deduct $7,000 of them.
the 7.5% the threshold was once ten%but it was reduced to 7.5% at the end of 2019.
What medical expenses can I deduct?
Here is a list of what counts as medical expenses:
- Physicians, dentists, surgeons, chiropractors, psychiatrists, psychologists and other healthcare professionals receive payments.
- Care in hospitals and retirement homes
- Programs to help people overcome addictions, such as quitting smoking.
- Weight loss programs for medically diagnosed conditions, such as obesity.
- Prescription drugs and insulin
- Admission and transportation to medical conferences relating to illnesses you, your spouse or dependents have.
- Dentures, reading glasses, contacts, hearing aids, crutches, wheelchairs and service animals are all examples of medical equipment.
- Travel costs to and from medical appointments.
- If your employer doesn’t pay your medical or long-term care insurance premiums, you must pay them out of pocket after taxes.