6. Medical Expenses: Claim Tax Deductions for Significant Healthcare Costs
What You Need to Know:
While many people know they can deduct medical expenses, not everyone realizes that they can deduct costs that exceed 7.5% of their adjusted gross income (AGI). This includes medical procedures, prescription drugs, and even transportation costs related to medical care.
- IRS – Medical and Dental Expenses
IRS Tax Guide on Medical and Dental Expenses
The IRS outlines which medical expenses can be deducted and how to claim them.
Example: If your AGI is $50,000, you would require more than $3,750 in restorative costs, sometimes recently deducted. If you paid $5,000 in qualified restorative costs, you might deduct $1,250.
HealthCare.gov – Can You Claim Medical Expenses?
HealthCare.gov Tax Deductions for Medical Expenses
Learn about medical deductions available for individuals who are filing their taxes
Tip: Keep nitty-gritty records of all medical-related costs, including receipts, bills, and doctors’ notes, to ensure you do not miss this finding.
You Took Advantage of Health Savings Account (HSA) Contributions
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