Don’t Forget to Deduct Health Care Expenses on Your Tax Return

Have you done your taxes yet? I usually start about now and finish in the 11^th hour. As a small business owner, I have to gather more information than the average person, and it’s something I pretty much loathe ever year. But, it’s a necessary evil, and I’ve learned a lot over the past six years. For example, medical expenses can be a valuable deduction.

I’ve told this to many people in the past, and I often get the same response. They say, “I don’t go to the doctor that much.” Or, “I don’t take prescriptions.” Well, I am fortunate that I don’t have to go to the doctor much, either, but every two weeks, my husband’s company takes money out of his paycheck so we can have health insurance. That adds up fast, and that’s not the only deduction you can take.

If you wear eyeglasses or contact lenses, that can be a deduction, as well as your contact solution. If you’ve had lasik surgery, that can be a deduction. Has your doctor ever prescribed an over-the-counter allergy medicine or nasal spray. A prescription makes it a medical necessity, which means it can be deducted. Even weight-loss procedures and meetings could be deductible if they are deemed medically necessary.

Here are some others you don’t want to overlook: 

• Expenses and mileage to and from medica/dental visits/procedures
• Dental procedures and teeth cleaning
• Co-pays for doctor visits
• Medical expenses not covered by insurance
• Costs to buy or rent crutches, wheelchairs, walkers, hearing aids, dentures, etc.
• Some remodeling costs associated with medical needs, like adding handicap accessible ramps, widening entry ways for wheelchairs, etc.

Read IRS Publication 502 for detailed information on deductible medical expenses.

Now, you can only deduct the portion of medical expenses that is more than 7.5 percent of your adjusted gross income. If your medical expenses are, say, 10 percent of your adjusted gross income, 2.4 percent of that is deductible. Trust me. It still can make a big difference, and you should take every allowable deduction you can get. This is your money we’re talking about. You should keep as much of it as the government will allow you to.

Also remember that NCU is not licensed to give tax advice. If you think you have legitimate medical expenses, be sure to discuss them with the person preparing your tax return, or check with the online service you use to prepare your own taxes.

What are some deductions you have overlooked in the past? Share them here so others can benefit from the conversation. And by the way, taxes are not due until April 18^th this year.