Medical Expenses Tax Deductions 2011, 2012

Some people are so weary of filing taxes that they tend to rush through the whole process, just opting for the simplest way out. However, you may want to claim a medical expenses tax deduction because it can represent a sizeable amount in tax savings.

The total amount claimed for medical expenses is calculated in Schedule A of Form 1040. To qualify, your medical and dental expenses for the year have to be higher than 7.5 percent of your AGI. Otherwise, you will not be able to claim for these deductions.

Medical expenses refer to the costs incurred for treatment, mitigation, cure or diagnosis of disease. If you have paid for treatment of any function or part of your body, it qualifies as a medical expense. Any payment made to dentists, surgeons, physicians or other medical practitioners for legal medical services is claimable. Medical expenses also extend to payment made for required diagnostic devices, costs of equipment, and supplies. It’s important to note that medical expenses are solely for the prevention and alleviation of a mental or physical defect or illness. General health expenses like a holiday or health supplements are not included even if they are recommended by a medical practitioner. Other items include long-term care services, insurance premiums for expenses of medical care, and transportation costs incurred for medical care.

Other than your own medical expenses, you can also include the medical expenses of your spouse or dependent. For your spouse, the criteria is that you must be married at the time the medical services have been rendered on your spouse or the time the medical expenses have been paid by you. The matter for dependents is a little more complicated. A dependent is defined as a qualifying child or a qualifying relative. To qualify, the person must fulfill the citizenship, residency or nationality criteria as outlined by the IRS. There are separate rules for adopted children.

Here’s a list of some medical expenses which can be included:

• Abortion
• Alcoholism
• Artificial Limb
• Birth Control Pills
• Braille Books and Magazines
• Breast Pumps and Supplies
• Capital Expenses for Medical Care-related Home Improvements
• Car: Special Design & Cost of Operation for Medical Reasons
• Contact Lenses
• Dental Treatment
• Drug Addiction Eye Surgery
• Fertility Enhancement
• Guide Dog or Other Service Animal
• Hearing Aids
• Hospital Services
• Special Home for Intellectually and Developmental Disabled
• Lead-Based Paint Removal
• Medicines
• Nursing Home & Services
• Operations
• Special Education
• Transplants
• Wheelchair

Here’s a list of some expenses which cannot be included:

• Baby Sitting
• Nursing Services for a Healthy, Normal Baby
• Controlled Substances
• Cosmetic Surgery
• Illegal Operations and Treatments
• Maternity Clothes
• Electrolysis or Hair Removal
• Funeral Expenses
• Hair Transplant
• Nutritional Supplements
• Teeth Whitening

It may take some amount of work and time to sort out all the details and requirements related to tax deductions for medical expenses. When you consider the amount of deductions you can gain, you will see that the time and effort is well spent. TurboTax 2012 tax software can help you search for every medical expense tax deduction you qualify to claim.