-medical care; includes dental, mental, and hospital
-prescription drugs and insulin
-special equipment: wheelchairs, crutches, artificial limbs, eyeglasses, hearing aids
-transportation for medical care
-medical and hospital insurance premiums
-longterm care insurance premiums(subject to limitations)
-cost of drug and alcohol rehabilitation
-certain costs to stop smoking
-weight reduction programs related to obesity
Note, that your expenses for these items will need to be over 10% of your AGI and you also must be itemizing your deductions for this to be a benefit, in a calendar year. Here's a theoretical example...
Your AGI is $50,000 and your medical expenses were $7,000. 10% of your AGI is $5,000, so $5,000 - $7,000 will be how much you can add to your itemized deductions. If you're in the 25% marginal tax bracket, these medical expenses would save you $500 on your taxes (2,000 x .25).
Pretty weak, but $500 is better than $0. If you're over the age of 65 I believe, then the threshold goes from 10% down to 7.5%.
-CC
RSS Feed