Medical expenses can be cumbersome, especially if unforeseen emergencies aren’t fully covered by your insurance. The Internal Revenue Service (IRS) makes some of these medical expenses partly tax-deductible to provide taxpayers relief on their tax return. To benefit from this deduction, you need to understand what qualifies as a deductible medical expense.
Deduction value for medical expenses
For 2017 and 2018, the IRS allows you to deduct qualified medical expenses that exceed 7.5% of your adjusted gross income (AGI). Starting January 2019, you can only deduct the portion of unreimbursed health care expenses that exceeds 10% of your AGI. AGI is your taxable income minus adjustments like IRA contributions and student loan interest.
Which health care expenses are deductible?
The IRS permits deductions for preventative care, treatment, surgeries, dental, and vision care. You can also deduct visits to psychologists and psychiatrists. Prescription medications and medical appliances like contacts, glasses, false teeth, and hearing aids are deductible. Additionally, you can deduct travel expenses for medical care, including mileage, bus fare, and parking fees.
Which health care expenses are not deductible?
If you receive reimbursement for medical expenses, such as from your employer, you cannot deduct them on your tax return. The IRS also does not allow deductions for cosmetic procedures. Non-prescription drugs (excluding insulin), general health purchases like vitamins, toothpaste, health club dues, diet food, or non-prescription nicotine products are not deductible. Furthermore, medical expenses paid in a different year cannot be deducted on your current tax return.
New York NY Accountant
Medical expenses can be complex, and handling them on your own can be challenging. Let our team of New York NY accountants assist you. With the Department of Finance collecting over $35.8 billion in revenue for NYC, our tax accountants are here to help you navigate the deductions for your health care expenses.
