If you or your clients paid a lot for health care in the last year, many of those expenses could qualify as a deduction from your taxable income on Form 1040, Schedule A. Use this checklist to determine which medical expenses you can take as a deduction on your income tax return.
Medical Expense Deduction Tips
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You have to itemize deductions to claim these expenses.
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Medical expenses are only deductible to the extent that they exceed 10% of your Adjusted Gross Income (AGI). If your AGI is $75,000, for example, the first $7,500 of qualified expenses (10% of $75,000) don’t really count for deduction purposes.
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However, if you're older than 65 years old there is a temporary exemption to the 10% rate. If you or your spouse are 65 years or older, or turned 65 during the tax year, you are allowed to deduct unreimbursed medical care expenses that exceed 7.5% of your adjusted gross income. The threshold remains at 7.5% of AGI for those taxpayers until Dec. 31, 2016.
Medical Expenses Deductions Checklist
The IRS offers a list for qualified medical expenses. We've included a partial list of qualified medical expenses below. For the complete list, see IRS Publication 502.
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Acupuncture
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Air conditioner necessary for relief from allergies or other respiratory problems (less any increase in the value of your home resulting from the installation of air conditioning)
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Alcoholism treatment, including inpatient treatment, meals, and lodging at a therapeutic center for alcohol addiction
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Artificial limbs
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Artificial teeth
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Birth control pills prescribed by a doctor
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Braille books and magazines used by a visually impaired person
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Contact lenses, including equipment and materials for using contacts
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Doctor or physician expenses
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Drug addiction treatment, including in-patient treatment, meals, and lodging at a therapeutic center for drug addiction
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Elastic hosiery to treat blood circulation problems
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Exercise program if a doctor has recommended it as treatment for a specific condition
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Eye surgery, such as Lasik or a similar procedure, when it is not for cosmetic purposes only
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Guide dog or other animal used by a visually-impaired, hearing-impaired, or otherwise physically disabled person
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Hospital care
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Household help for nursing care services only
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Insurance premiums for medical care coverage
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Laboratory fees
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Lead-based paint removal, including the cost of removing lead-based paints from surfaces when a child has lead poisoning or was previously diagnosed with lead poisoning. (Does not include the cost of repainting.)
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Legal fees paid to authorize treatment for mental illness
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Lifetime care advance payments
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Lodging expenses while away from home to receive medical care in a hospital or medical facility
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Long-term care insurance and long-term care expenses (there are limitations to what you can deduct)
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Mattresses and boards bought specifically to alleviate an arthritic condition
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Medical aids, including wheelchairs, hearing aids and batteries, eyeglasses, contact lenses, crutches, braces, and guide dogs (and their care)
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Medicines and drugs
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Nursing care
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Nursing home expenses, including the entire cost of medical care, plus meals and lodging if the main reason for being in the home is to obtain medical care
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Oxygen and oxygen equipment
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Special education tuition for sending a mentally impaired or physically disabled person to a special school that has resources to relieve the disability
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Smoking cessation programs (does not have to be recommended by a physician)
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Swimming (the cost of therapeutic swimming prescribed by a physician)
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Telephone (the cost and repair of special telephone equipment for a hearing-impaired person)
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Television (the cost of equipment used to display the audio part of a TV program for hearing-impaired persons)
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Transplant of an organ (but not hair transplants)
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Transportation costs for obtaining medical care
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Travel expenses for parents visiting their child in a special school for children with drug problems, where the visits are part of the medical treatment
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Weight loss program, if it is recommended by a doctor to treat a specific medical condition or to cure any specific ailment or disease
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Whirlpool baths prescribed by a doctor
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X-ray services
