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| Medical Tax Deductions: Let Uncle Sam Share Elder Care Costs |
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The medical tax deduction could save you hundreds, even thousands of dollars this year. It’s sad but too often true: many American seniors fail to take all the tax benefits allowed for health care. It’s a big surprise to me how few know that the IRS actually provides important medical tax benefits. If you or a loved one is paying out large sums of money, a portion of it may be able to reduce annual income taxes. Once medical expenses exceed 7.5% of adjusted gross income, every penny of medical and dental expense reduces income taxes. The rules allow you to include all medical and dental costs, even for those who passed away sometime during the tax year. The variety of deductible expenses is quite large. Included are transpor-tation costs from your home to the place of treatment (hospital, doctors office, etc.). The actual fare for a taxi, bus, train, or ambulance can be deducted. If you use your car for medical transportation, you can deduct actual out–of–pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses. With either method you may include tolls and parking fees. Wheelchairs, crutches and other mobility products are tax deductible. If your house is renovated on the doctor's advice, part of that cost is recoverable, too. Here’s a partial list of other expenses eligible for deduction. expenses for acupuncture, eye surgery, drug rehabilitation, weight loss programs, hearing aids, dentures, prescription drugs, insulin, nursing home fees nursing services, ambulance service, hospital expenses, laboratory fees, health insurance premiums, premiums for Medicare (Parts A, B & D) premiums for long term care insurance, fees paid to physicians, surgeons, dentists, psychologists, chiropractors and Christian Science practitioners For more complete information, check out IRS Publication 502, Medical and Dental Expenses. This tip only offers a brief glimpse into deductible medical expenses. As with all tax laws, it’s best to seek the advice of a competent professional to see how to best apply take advantage of these rules. |