posted
do people deduct the medical costs on their tax return?
barb
Posts: 167 | From USA | Registered: Jul 2008
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Keebler
Honored Contributor (25K+ posts)
Member # 12673
posted
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Yes. Medical deductions do exist.
You have to get a list from the IRS as to what is allowed and if there is any amount that you'd have to go over to claim deductions in the first place.
Basically, MDs, pharmaceuticals - only prescriptions - all traditional medical costs that are out of pocket.
Over-the-counter, complementary, supportive measures or supplements are not covered in most cases. [Edited to add: see posts below - if prescribed for a medical condition . . . - not just as good health measure. ]
However, if "medical massage" were prescribed by your MD, that might be a deductible expense. Still, you'd have to confirm that with the IRS. It may need to be for a particular coded dx, such as pain.
Rules change from time to time, too. So, you'd want the most current set of guidelines.
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[ 27. July 2008, 03:59 PM: Message edited by: Keebler ]
Posts: 48021 | From Tree House | Registered: Jul 2007
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1Bitten2XShy
Unregistered
posted
As of 2007 filing, you could claim supplements IF your Dr. told you to take them/you needed them.
I got clarification from the IRS on this one, as I had mega medical expenses to claim and they said this could be taken IF your MD told you that you had to take them.
Also, remember, you can deduct your mileage as well to and from your LLMD!
Yes! So keep track of your treatments. The costs of acupuncture and prescribed herbal medicine are indeed deductible medical expenses.
What is a medical expense?
Acupuncture falls under the definition of a medical expense which is: ``the costs of diagnosis, cure, mitigation, treatment, or prevention of diseases, and the costs for treatments affecting any part or function of the body.
They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.''
What expenses can you include?
ACUPUNCTURE TREATMENTS:_You can include the amount you pay for acupuncture for you, your spouse, children and dependents.
PRESCRIBED HERBS AND SUPPLEMENTS:_Nutritional supplements, vitamins, Chinese herbal supplements and other natural medicines that are prescribed by an acupuncturist or physician as treatment for a specific medical condition that is diagnosed by an acupuncturist or medical practitioner are tax deductible.
TRANSPORTATION TO ACUPUNCTURE APPOINTMENT:_The standard mileage rate allowed for out-of-pocket expenses for a car when you use it for medical reasons is 14 cents a mile for 2004.
Bus, taxi, train and plane fares primarily for and essential to medical care are also included. How much of the expenses are included?
You can deduct only the amount of your total medical and dental expenses for the year that is more than 7.5% of your adjusted gross income.
posted
Yes - I looked at the IRS website a couple of years ago and all medical related supplements are deductable if your Dr. told you to take it for a specific condition
If you are just taking it for general health measure, than no
"You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, ``natural medicines,'' etc.
unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician.
Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care."
It's all in this document IRS #502 about medical and dental expenses
-------------------- "We must be willing to get rid of the life we've planned, so as to have the life that is waiting for us" - e.m. forster Posts: 921 | From PA | Registered: Jan 2004
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Keebler
Honored Contributor (25K+ posts)
Member # 12673
posted
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As for mileage tallies - MapQuest might work as documentation.
posted
thank you everyone. barb
Posts: 167 | From USA | Registered: Jul 2008
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Angelica
Unregistered
posted
I am an admitted tax idiot.
Do you have to have more than say a certain amount of expenses to make medical deductions. Say like over $10,000. in expenses?
My tax preparer acted like I could not take medical deductions because my expenses were not big enough which I find hard to believe.
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1Bitten2XShy
Unregistered
posted
1st off you have to be able to file a Schedule A, or Itemize you deductions. If you have a mtg., most likely then you itemize and do not take the standard deduction.
Then, your medical expenses have to exceed a certain amount, %, in order to be taken. Right now I cannot remember that % amount...too tired to dig out the old tax return and look too!
But, between all our co-pay's, or out-of-pocket for many, along with drugs, mileage etc etc it can add up VERY quickly. I have insurance which thank the lord has paid for most of this medical journey and I still had $ 24K in out-of-pocket expenses last year! And my LLMD is only 3 hrs one way, so it is not like I had flights or hotels or anything like that.
So be sure to keep your receipts, mark on a calendar every time you visit Doc, Drugstore etc, and yes Keebler you are right Mapquest will do the trick for mileage. Tolls also can be taken!
I have a medical file just for receipts and I just toss em in there and sort it out come tax time.
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tdtid
Frequent Contributor (1K+ posts)
Member # 10276
posted
What a wonderful topic. Although I knew about this tax stuff, I think sometimes we get so caught up with being sick and then insurance denials, that before we know it, we are off in another world and not thinking straight.
This was a WONDERFUL reminder considering I just got my port in and already have the insurance battle but probably won't win any appeals, so keeping accurate records will be golden for this.
THANK YOU for the timely message.
Cathy
-------------------- "To Dream The Impossible Dream" Man of La Mancha Posts: 2638 | From New Hampshire | Registered: Oct 2006
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Keebler
Honored Contributor (25K+ posts)
Member # 12673
posted
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Great link - in that:
excerpt:
Nonprescription Drugs and Medicines
Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed.
Example.
Your doctor recommends that you take aspirin. Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses.
Nutritional Supplements
You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, ``natural medicines,'' etc. unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician.
Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care.
lymednva
Frequent Contributor (1K+ posts)
Member # 9098
posted
To be deductible your expenses have to exceed 7.5% of your gross income.
I am on nontaxable LTD, which is a big help in that area, plus SSDI, also not taxable unless I earn a rather large amount otherwise. My pensions are very small. So I've been able to deduct for medical expenses.
This year will be different, though because I am filing for property tax relief based on disability and my income and assets. They are fairly liberal here due to the high cost of living and income of the county.
I just keep leaving out one piece of the application, even with someone going over it with me! That will be nice except I lose the deduction.
The net gain will be worth the loss in taxes. I didn't file taxes for several years in a row. That was fine with me. Had to this year, but was able to deduct enough to keep from paying taxes.
By the way, I have deducted my massages on my taxes since I began getting them. They are definitely a medical necessity for pain. You don 'tlist your dx on the tax form.
That would only come up in an audit. They usually save those for people they have more to gain from auditing.
-------------------- Lymednva Posts: 2407 | From over the river and through the woods | Registered: Apr 2006
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posted
Besides the mileage to each & every appointment, I also claim food & lodging when we have to go out of town, which has been a lot this year, unfortunately.
-------------------- "Life isn't about waiting for the storm to pass, it's about learning to dance in the rain." Anonymous Posts: 450 | From California | Registered: Feb 2008
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bettyg
Unregistered
posted
for us diabetics,
i bought DIABETES/NEUROPATHY socks for me; it's DEDUCTIBLE too since they are a NECESSITY for both symptoms!
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posted
So what yu are saying is...if you make $40,00 a yr. your expenses have to exceed $40k by 7.5%? I need everything spelled out to me to understand.
Posts: 847 | From upstateNY | Registered: Dec 2007
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lymeinhell
Frequent Contributor (1K+ posts)
Member # 4622
posted
How Much of the Expenses Can You Deduct? You can deduct only the amount of your medical and dental expenses that IS MORE THAN 7.5% of your adjusted gross income (Form 1040, line 38).
This phrase means that you must subtract 7.5% (.075) of your adjusted gross income from your medical expenses to figure your medical expense deduction.
An Example.
Your adjusted gross income is $40,000, 7.5% of which is $3,000. You paid medical expenses of $2,500. You cannot deduct any of your medical expenses because they are not more than 7.5% of your adjusted gross income.
-------------------- Julie _ _ ___ _ _ lymeinhell
Blessed are those who expect nothing, for they shall not be disappointed. Posts: 2258 | From a better place than I was 11 yrs ago | Registered: Sep 2003
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I am a CPA (though not a tax CPA), so understand these tax issues a bit. I also deducted my medical expenses last year.
Barb, have you filed your 2007 return yet? If not, I could help you with the medical expenses portion in a week or two (going out of town tomorrow and other stuff to deal with).
PM me if you you want to connect about this.
Erica
Posts: 408 | From California | Registered: Apr 2008
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