Beginning this tax year, 2014, the only medical expenses that you can deduct are those in excess of 10% of your adjusted gross income (AGI), up from the previous 7.5% AGI limitation. The limitation remains at 7.5% for taxpayers age 65 and over through 2016, unless they are subject to the alternative minimum tax, in which case it is 10% for them as well. For joint return filers not subject to the AMT, if either spouse is age 65 or older, the 7.5% of AGI limitation applies to their joint medical expenses.
If you don’t itemize your deductions or are nowhere near exceeding the AGI limitation, you need not concern yourself with this deduction. On the other hand, if you do itemize and think you might meet the AGI limitation, then it may be worth your time to summarize your medical expenses for the year. Use the following checklist to help you accumulate your deductible medical expenses. The list is by no means all-inclusive, and some of the deductions listed may have additional restrictions not included here.
- Ambulance
- Artificial Limb
- Artificial Teeth
- Birth Control Pills
- Braille Books and Magazines
- Abortion, Legal
- Acupuncture
- Alcoholism Treatment
- Chiropractor
- Christian Science Practitioner
- Contact Lenses
- Crutches
- Dental Treatment
- Drug Addiction Treatment
- Drugs (Prescription)
- Eyeglasses
- Fertility Enhancement
- Guide Dog
- Hearing Aids
- Hospital Services
- Impairment-Related Expenses
- Insurance Premiums
- Laboratory Fees
- Laser Eye Surgery
- Lead-based Paint Removal
- Learning Disability Treatment Medicare B & D Premiums
- Medical Services
- Medicines, Prescribed
- Mentally Retarded, Special Home for
- Nursing Home
- Nursing Services
- Operations
- Optometrist
- Organ Donors
- Osteopath
- Oxygen
- Prosthesis
- Psychiatric Care
- Psychoanalysis
- Psychologist
- Special Schools and Education
- Sterilization
- Stop Smoking Programs
- Surgery
- Therapy
- Vasectomy
- Weight-loss Program
- Wig (Cancer Patient)
Remember that just because your insurance will not cover a particular expense does not mean you can not take a tax deduction for it.
If you have questions related to your medical tax deductions please us a call.
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Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.
