Medical and Dental Expenses
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H&R Block Tip: To protect yourself in case of any IRS audit, it is recommended to keep the following records on hand to verify your medical expense deduction:
- Cancelled checks and receipts of payments
- Permanent records containing your medical provider's name and address, date of expenses, and the amount of expense paid.
- Any documentation from your provider regarding prescriptions, medical treatments, and expenses incurred. This is where a copy of your prescription, and your doctor's written order come in handy.
It is in your best interest to itemize your federal tax deductions and state tax deductions (if any) to net the largest tax cut you can when you file tax forms. The IRS has a handful of publications that identify deductible items, including among others Publication 529, Miscellaneous Deductions; Publication 936, Home Mortgage Interest Deductions; Publication 502, Medical and Dental Expenses; and Publication 503, Child and Dependent Care Expenses. There are also publications devoted specifically to business tax deductions, including Publication 535, Business Expenses. For a complete list of forms and publications that address these and other topics regarding deductible items, visit the Topical Index to IRS Forms and Publications on the IRS' Web site.