Directions for Deducting Medical and Dental

ExpensesDo you have high healthcare

costs? This slideshow will help you determine if you are eligible to lower your tax bill with medical

and dental related tax deductions.

You MUST ItemizeYou can only claim a deduction for your medical expenses if you itemize your deductions. On your 2015 return, you should claim the expenses you paid in 2015. You cannot claim these expenses if you use the standard deduction.

Adjusted Gross Income Threshold

You can only deduct the amount of medical or dental expenses that are over 10% of your adjusted gross income (AGI), even if you included all of the qualified medical costs that you paid for during the year.

Threshold for Age 65

However, if you or your spouse is age 65 or older, then the AGI threshold is 7.5%. This exception applies through December 31st, 2016.

Payments to Include

You can include almost every medical and dental cost that you paid for yourself, your spouse, and your dependents. Exceptions and special rules do apply. However, the costs reimbursed by insurance or other sources do not qualify for a deduction.

Expenditures to Include

You can include the costs of diagnosing, treating, easing, or preventing a disease. For example, the costs you pay for prescription medication and insulin qualifies. The costs of your insurance premiums for medical care policies also qualify. Some long-term care insurance costs can also qualify.

Traveling ExpensesYou may be able to claim travel costs you pay for in regards to medical care. This includes costs such as public transportation, ambulance service, tolls, and parking fees. If you use your personal vehicle, you can deduct either the actual costs or the standard mileage rate for medical travel. The rate is 23 cents per mile for 2015.

No Double Benefits

You can’t claim a tax deduction for medical expenses you paid for with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free. This rule prevents two tax benefits for the same expense.

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Citation: Claiming a Tax Deduction for Medical and Dental Expenses IRS Tax Tip 2015-31, March 4, 2015, https://www.irs.gov/uac/Claiming-a-Tax-Deduction-for-Medical-and-Dental-Expenses