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Medical expenses are subject to the 7.5% rule. That means you will receive a tax cut only for those expenses that exceed 7.5% of your adjusted gross income. That said, while not everything medical is considered deductible, more things are allowed as medical federal tax deductions than you might think. For starters, medical expenses can be for you, your spouse, or any of your claimed dependents. Yes, there's all the standard stuff, such as payments for prescriptions, medical services, and other expenses directly attributable to diagnosis or treatment of a medical condition. But did you know that transportation costs such as train, cab, or bus fare to travel to or from a medical appointment are allowable personal tax deductions? And if you use your own car, you can claim a mileage deduction for travel to and from medical appointments. You can also claim incidental expenses related to medical appointments, such as meals and lodging as long as the sole reason you incurred the expenses were related to diagnosis and/or treatment of a medical condition. For more information on what is and what is not deductible, read IRS Publication 502, Medical and Dental Expenses.
|Jennifer Mathes, Ph.D.|