Question: Can I deduct medical related expenses?
Answer: Yes, you can receive a tax deduction for medical expenses.
If you’ve incurred substantial medical expenses throughout the year, the IRS allows you to deduct a portion of those expenses as itemized deductions. In order to be eligible, you must have qualified medical expenses that exceed 10% of your adjusted gross income. However, if you are 65 years or older, you must have qualified medical expenses that exceed 7.5% of your adjusted gross income.
To receive a tax deduction for medical expenses, qualified expenses include:
- Prescription medications
- Health insurance premiums
- Medicare premiums
- Fees for doctors and dentists
- Fees for hospitals and clinics
- Lab and x-ray fees
- Eyeglasses and contact lenses
- Medical equipment and supplies
You would report the medical expenses as itemized deductions on Schedule A of your personal tax return (Form 1040). If you had significant medical expenses and forgot to include those on any previously filed tax returns, you can still go back and file an amendment. By filing an amended federal tax return (Form 1040X), you can potentially decrease your total taxable income for those tax years and possibly get a refund. It should be noted that you have 3 years from the date you filed the original tax return to go back and file an amendment. Once the amendment has been filed, the IRS takes approximately 4-12 weeks to process the amended tax return. Therefore, receiving a tax deduction for medical expenses on your tax return should be straight-forward.