skip to main content

Household Finances

IRS Medical Deduction?

17 years ago

Anyone know how much your medical expenses have to be to qualify for a tax deduction? What percentage of what income? And, what qualifies as 'medical' cost -- would that include insurance premiums or just out of pocket? (Asks the lady with the $7K hip surgeon's bill.)

Sort by:Oldest

Comments (9)

duluthinbloomz4
17 years ago
Only medical expenses that exceed the 7.5% threshhold of your adjusted gross income are deductible.

IRS publiation 502 explains when and how insurance premiums can be deducted - that too hinges on exceeding the 7.5% AGI. Also lists those things that are considered to be part of one's medical expenses.
chisue
Original Author
17 years ago
Thanks, duluthinbloomz4. Looks like we will have some paperwork to do, but also a deduction. I didn't realize you could deduct dental expenses, prescribed medicines, and insurance premiums.
Related Discussions
Tax deductible?
Q
Comments (2)
Since you are talking about deductions on the federal IRS forms, there shouldn't be a difference from state to state. Cornell University is non-profit educational institution and would qualify as an "educational entity". Mileage or other expenses you incur which are "donated" to the Master Gardener Program should be deductible if you itemize your taxes.
...See More
paying too much tax? (too much deducted from payroll)
Q
Comments (8)
Get Form 1040-ES for 2009. It has what should be the correct tax RATES for 2009. Figure what is your yearly salary, estimated interest income, whatever else you may have. Self-employment, even, but then you have to include Schedule C and SE. Figure your personal exemptions and deductions as best you can based on either itemization or standard deduction for your filing status. Calculate what is the tax liability against the rates in 1040-ES and divide that by the number of pay periods you have. That tells you have much tax to withhold from each check. I've been doing this for years on a spreadsheet, correcting the numbers as the year progresses. Some things are difficult to estimate, such as dividends and capital gains for income, or unexpected medical expenses for deduction itemization and any last-minute changes to the tax code. I AM the payroll department at work, so I can adjust my withholding whenever I want. I purposely try to have a small balance due. One year I owed or was refunded (don't recall which) $26. For 2008 tax year I owe $115. 2007 tax year I got a $1,055 refund, tripped-up by some medical expenses for an incident in June that I couldn't predict if it'd all be settled by end of the year (which it was, by just a few days).
...See More
Tax deductions for donations
Q
Comments (13)
We have always kept a good tally of our deductions, and also tithe. We had been keeping those tallies for years, and giving as much as we could feel comfortable giving, and found out after the fact that we usually did not exceed the standard deduction. We don't hold a mortgage, and that could be why. Since finding that out (we have an accountant do our returns), I am more careful now on my timing for contributions, monies into an IRA, expenditures, capitol gains. I donate to charities/churches because I want to help them, but there is nothing wrong with also being able to use it to offset taxes if you can. I guess standard deductions are nice, but if you don't exceed them, even when you give generously, and others who don't give anything still get the same tax breaks......well, it sort of takes the hair off where fairness is concerned. I have been known to make phone calls to my accountant to ask "Is this a good time to buy capital equipment?", "Is this a good time to make a withdrawal from a deferred account?" It really helps to sit down at times other than tax time, to crunch your numbers after the fact and project what your tax liabilites will be or how you can plan deductions to your best tax benefits. Like you are doing, btw. But a lot of people don't. Always run your household finances, like it were a business.
...See More
Is medical insurance tax deductible?
Q
Comments (10)
"I'd say it's well worth looking into, by asking someone who is a certified accountant (skip the employees of that highly advertised store front tax chain--they only get a few weeks course in tax prep, and the returns they prepare have a very high percentage of being audited)." Azzalea Please remember that not all CPAs are good tax preparers. There are many who are. Most CPAs donÂt actually prepare the returns themselves. They have a "back room" that does the tax prep. The CPA may review the return in detail or may not even look at it. What Azzalea says about the chain tax prep firms is a common misconception. There are tax preparers at those chains that have been doing taxes for over 10 or more years. I know several that have been doing tax returns for over 20 years with those big chains. IÂd like to know where azzalea got the information that leads azzalea to believe that the chains have a very high percentage of audits. I have never seen a statistic published by the IRS that shows this. The key to finding a tax person is to ask about their experience with returns similar to yours. Ask about the guarantee that your return is done correctly. Ask if they will go to an audit for no additional fee if you audited. Back to the original question, whether or not you have enough medical expenses depends on your situation, your income, your medical expenses and how many other itemized deductions you have.
...See More
hendricus
17 years ago
Don't forget the mileage going to all the appointments, checkups, etc.
mariend
17 years ago
Long term insurance premiums also. Glasses, and even some over the counter meds. Each year they change so your tax person should be aware of most, or check the IRS web site and don't forget the state. Some states are different than federal.
Even the medical on your car insurance is deductable.
jlhug
17 years ago
Sorry, medical insurance that is part of your automobile insurance isn't deductible as a medical expense.

See page 10 of Pub 502 linked below.

There is a pretty comprehensive list of what can be deducted started on page 5 of the pub.

Here is a link that might be useful: IRS Pub 502 Medical and Dental expenses
hendricus
17 years ago
Sorry, medical insurance that is part of your automobile insurance isn't deductible as a medical expense.
---------------------------------------------------------

I couldn't find a reference for this, do you have a page number?
jlhug
17 years ago
IRS Pub 502

Page 10

First colunm

Fifth Bullet

I referenced the page number in my first post but failed to reference the column and bullet. sorry

Here is a link that might be useful: IRS Pub 502 Medical and Dental expenses
hendricus
17 years ago
Thank you. I used to deduct it all the time when we itemized but that was a few years ago.
jlhug
17 years ago
You are welcome, hendricus. I spent many years teaching tax classes. At some point in almost every class, each student would get a look of horror when he realized that he had been doing something wrong for many years on his tax returns.

Related Stories

MOST POPULAR How to Create an Inventory, Whether You're Naturally Organized or Not

By Alison Hodgson

Documenting your home items is essential, even if disaster seems unimaginable. And it may be easier than you think

ORGANIZING Want to Streamline Your Life? Get a System

By Glamour Nest

Reduce stress and free up more time for the things that really matter by establishing specific procedures for everyday tasks

DECLUTTERING 9 Exit Strategies for Your Clutter

By Alison Hodgson

How to efficiently — and regularly — rid your home of the things you don’t want

DECLUTTERING Your Clutter-Clearing Plan for the New Year

By Laura Gaskill

Tackle these tasks month by month for a decluttering strategy that will really pay off

MOST POPULAR Organizing? Don’t Forget the Essential First Step

By Laura Gaskill

Simplify the process of getting your home in order by taking it one step at a time. Here’s how to get on the right path

HOME INNOVATIONS Considering Renting to Vacationers? Read This First

By Mary Jo Bowling

More people are redesigning their homes for the short-term-rental boom. Here are 3 examples — and what to consider before joining in

HOME OFFICES The 20 Most Popular Home Office Photos of 2015

By Becky Harris

Technology paves the way for space-saving work areas, while designers make up for small sizes with style

DECORATING GUIDES Improving a Rental: Great Ideas for the Short and Long Haul

By Laura Gaskill

Don't settle for bland or blech just because you rent. Make your home feel more like you with these improvements from minor to major

LIFE How to Prepare for and Live With a Power Outage

By Lisa Frederick

When electricity loss puts food, water and heat in jeopardy, don't be in the dark about how to stay as safe and comfortable as possible

HOME OFFICES 9 Hacks for a Clutter-Free Home Office

By Natasha Saroca

Use these clever ideas to transform a chaotic study into one that’s more conducive to working

Sponsored