As we hit the final 30 days of this Presidential election year, the Affordable Care Act is mentioned more and more in the news, during political debates, and around kitchen tables. The conversation is leading to a ‘What medical expense can I deduct’ question to reappear over and over again in our email Inbox, phone calls, and events.
Medical expense deduction is only in play if you itemize your deductions and the deduction only applies to that in excess of 10% of income (under age 65) or 7.5% (over age of 65)
General rule – it’s not deductible unless prescribed by a doctor.
Deductible Medical Expenses include:
Insurance premiums for medical and dental care
Prescription medicines or insulin
Acupuncturists
chiropractors
dentists
Eye and medical doctor
Physical therapists
Psychologists
Medical exams – x-rays, lab services, insulin treatment, and whirlpool bath the doctor ordered.
Diagnostic tests – full body scan, pregnancy test, blood sugar test kit
Hospital care
Clinic costs
Medicare Part B and Part D
Stop smoking programs
Weight loss program
Medical treatment at center for drug or alcohol addiction
Medical aids – eyeglasses, contact lenses, hearing aids, etc
Ambulance Care
Medical miles – $.19 per mile
NON DEDUCTIBLE MEDICAL EXPENSE
Nursing care for a healthy baby
Illegal operations or drugs
Imported drugs not approved by the FDA
Nonprescription medicines (excluding insulin)
Travel the doctor told the client to take for rest or a change
Funeral, burial, or cremation costs
Resource – bmp, CPA includes a breakdown of allowable medical expenses in it’s annual tax organizer for you to make gathering information easier. If you want this breakdown worksheet in advanced, please let us know and we’ll get it to you. info@bmp-cpa.com or 319.239.9903
