According to tax laws, medical expenses are the total costs for diagnosis, cure, mitigation, treatment or prevention of disease, and for treatments affecting any part or function of the body.
It covers the expenses for health insurance premiums, doctors, hospital stays, diagnostic testing, prescription drugs, and medical equipment.
And if a person itemizes his or her personal deductions at tax time rather than claiming the standard deduction, then he/she may deduct multiple healthcare as well as medical expenses. However, one can’t take them all: For the tax year 2019, one can only deduct out-of-pocket expenses that are more than 7.5 percent of his/her adjusted gross income or AGI.
Here are the top medical expenses everyone must know about:
Acupuncture is definitely deductible. There are numerous types of alternative treatments as well, particularly if a physician orders them.
The total expenses of wheelchairs, bath chairs, bedside commodes, and various other items required for a disability or condition are deductible.
Expenses for Newborns
Here, we are not talking about diapers. Breast pumps and various other nursing supplies that assist lactation are deductible. In addition to this, if a baby formula needs a prescription, then the cost in excess of the total expense of the regular formula will be allowed.
Costs Related to Diabetes
Blood-testing kits along with blood strips and batteries come under the deductible. So, too, is insulin even if it is not typically considered as a prescription drug.
Conditions Related to Eye & Ear Conditions
The expense of eye exams, contact lenses, contact lens insurance, and prescription glasses (even sunglasses) come under the deductible, assuming a person’s insurance does not have a vision plan. So, too, is eye surgery, such as LASIK, that corrects one’s vision issues. Braille books are also deductible. People with hearing problems can deduct the expenses of exams as well as hearing aids including batteries.
If you decide to install permanent features to accommodate a disability such as wheelchair ramps, handrails in bathrooms, then the cost becomes fully deductible. But the total cost of renovations in the home to address a health condition is considered deductible only for costs above any increase they might give to the home’s value.
For instance, putting in a swimming pool or steam room costing $25,000 will not be deductible if it will add $30,000 to the worth of your home.
Lodging To Acquire Medical Treatment
If your treatment is out of town, then a hotel or motel stay is deductible up to $50 per night. And if a parent accompanied his or her child who is receiving treatment, then the per-night dollar limit applies per person to both parent and the child, which is $100 per night. This deduction only applies to the lodging itself and not meals.
Attending a Medical Conference
The total expense of admission as well as transportation to a conference on a chronic condition that a taxpayer, spouse, or dependent suffers from is considered deductible. As mentioned earlier, meals and lodging expenses are not deductible here as well.
Not only are the expenses of the organ recipient deductible but also the expenses for the donor such as testing, hospital stay, and transportation are deductible.
Personal Attendant Expenses
For people who are not able to manage the tasks of daily living such as bathing, dressing, taking medications, toileting, then the cost of caregiving help is considered deductible.
Typically, the deductible portion is limited to personal assistance with feeding, dressing, etc. and the cost of housecleaning and various other chores (although this will be difficult to separate out, frankly speaking) are not included. But the total cost of meals for a personal attendant can be deductible.
Rehab Treatment Programs
The total cost of in-patient, as well as out-patient treatment plans for alcohol, drug addiction, and various other medical problems, is deductible.
Cost Related to Reproduction
This expense includes the cost of birth control pills, pregnancy test kits, abortions, vasectomies, and even fertility treatments such as in-vitro fertilization or surgery to reverse a vasectomy.
Here, deductible costs include doctor-prescribed treatments. Also, over-the-counter gums, patches, and various other such treatments are not covered.
A doctor-prescribed diet to treat a medical condition such as celiac disease, obesity, or hypertension is partially deductible. Just the total expense of special foods that exceed the cost of regular foods is deductible.
There is more to it! But the aforementioned are the most common ones. We hope we helped you to get a clear understanding of each one of them.