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Medical Expenses Tax Deduction
The cost of medical care in America might be sky high but a lot of Americans are eligible for an itemized deduction for medical expenses in 2019 if they meet certain qualifications. A new blog post on Efile Tax Advisor sheds light on what these qualifications are and how to easily claim the medical expenses tax deduction in the 2019, 2020 tax season. So, if you do not want to potentially miss out on thousands of dollars in deductions.
Taxpayers whose medical expenses exceed 7.5% of their calculated adjusted gross income in the 2017 and 2018 tax year are allowed to make deductions for any medical expenses. For instance, if a taxpayer has an adjusted gross income of $45,000 and a medical expense of $5,475, the adjusted gross income of $45,000 will be multiplied by 0.075. This equals $3,375. So, any medical expenses above this figure will be deductible. In this case, that would be $2,100 in medical expenses.
Taxpayers should also note that not every type of medical expense is deductible as the IRS will only give credence to qualified medical expenses.
Some of the medical expenses that can be deducted are:
- Preventative care.
- Medical treatment.
- Dental and optical care.
- Visits to psychiatrists and psychologists.
- Prescriptions are also deductible, including hearing aids, glasses, and contact lenses.
- Medical mileage deductions can also be made
Some of the medical expenses that cannot be deducted include:
- Reimbursed medical expenses
- Employer-sponsored healthcare programs
- Cosmetic medical procedures
- Non-prescription drugs including insulin
- General health purchases, like vitamins and dietary foods
To claim the medical expenses deduction from the IRS, all deductions need to be itemized. Standard deductions do not apply and taxpayers, whose standard deductions are higher than the itemized deduction, will not be eligible for the medical expenses deduction.
To easily itemize these deductions, Efile Tax Advisor recommends using an online tax preparation to help work out the figures quickly and easily.
For more information on the Medical Expenses Tax Deduction 2019, 2020 and how to easily claim it using an online tax preparation software, please visit, https://efiletaxadvisor.com/2019/05/06/medical-expenses-tax-deduction/