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Friday, 22 February 2019 18:47

Medical tax deductions you never thought you could use

Written by Dr. Daliah Wachs
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It’s tax season and most of us are hoping to shave a few bucks off our tax bill. Well, many are not aware of the deductions that are available when it comes to medical expenses.

If you spent over 7.5% of your adjusted gross income on unreimbursed medical expenses during 2018, you may be able to deduct what you spent over this 7.5%, according to the IRS.

So, for example, if you make $100,000 a year, 7.5% would equal $7,500.  So let's say you spent $10,000 on medical expenses, subtract the 7.5 % ($7,500) from $10,000, and the remaining $2,500 is tax-deductible.

But the expenses made can also include those of your spouse, children and dependents. Combined, these could qualify you for descent deductions.

Publication 502 breaks down what services or items you purchased in 2018 that are tax-deductible and which are not.  Here’s a brief summary:

Tax Deductible Items:

  • Abortion (legal)
  • Acupuncture
  • Alcohol and Drug Treatment
  • Ambulance Service
  • Annual physicals
  • Artificial Limbs
  • Artificial Teeth/Dentures
  • Bandages – so supplies for wounds, burns, nose bleeds  
  • Birth Control Pills
  • Home Improvements
    • under the “Capital Expenses” section, the IRS states the following:
    • You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. The cost of the improvement is reduced by the increase in the value of your property. The difference is a medical expense. If the value of your property isn’t increased by the improvement, the entire cost is included as a medical expense.

    • Certain improvements made to accommodate a home to your disabled condition, or that of your spouse or your dependents who live with you, don’t usually increase the value of the home and the cost can be included in full as medical expenses. These improvements include, but aren’t limited to, the following items.

      • Constructing entrance or exit ramps for your home.

      • Widening doorways at entrances or exits to your home.

      • Widening or otherwise modifying hallways and interior doorways.

      • Installing railings, support bars, or other modifications to bathrooms.

      • Lowering or modifying kitchen cabinets and equipment.

      • Moving or modifying electrical outlets and fixtures.

      • Installing porch lifts and other forms of lifts (but elevators generally add value to the house).

      • Modifying fire alarms, smoke detectors, and other warning systems.

      • Modifying stairways.

      • Adding handrails or grab bars anywhere (whether or not in bathrooms).

      • Modifying hardware on doors.

      • Modifying areas in front of entrance and exit doorways.

      • Grading the ground to provide access to the residence.

  • Transportation (Uber, Taxi, Bus ride to medical office/lab/hospital)
  • Mileage (18 cents a mile for trips to medical office/lab/hospital)
  • Breast feeding/pump supplies
  • Medications that were prescribed by a provider
  • Hearing Aids
  • Insurance Premiums
  • Oxygen
  • Contact lens/glasses
  • Crutches
  • Service animal – and most of their expenses
  • Lodging and Meals when going to out-of-town medical facilities
  • Nursing home
  • Nursing expenses
  • Pregnancy tests
  • Wigs
  • Wheelchairs
  • Vasectomies
  • and the list goes on

Unfortunately the following cannot be written off:

  • Gym memberships
  • Cosmetic surgery (unless for reconstruction after cancer or trauma/disfigurement)
  • Dance lessons – despite using it for weight loss
  • Funeral expenses
  • Maternity clothes
  • Insurance premiums that were covered by the employer
  • Over the counter medications and supplements
  • Teeth whitening

So review the list and see what you can apply to your 2018 itemized deduction worksheet.  But make sure you have your receipts and logging of car mileage…. and start keeping track this year as well!

 

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Daliah Wachs is a guest contributor to GCN news, her views and opinions, medical or otherwise, if expressed, are her own. Doctor Wachs is an MD,  FAAFP and a Board Certified Family Physician.  The Dr. Daliah Show , is nationally syndicated M-F from 11:00 am - 2:00 pm and Saturday from Noon-1:00 pm (all central times) at GCN.