The Most Overlooked Medical Deductions That Can Save You MoneyJune 1, 2023
With the rising costs of healthcare, it’s important to take advantage of every deduction possible. There are many deductions that people overlook, but can save you a significant amount of money. Here are some of the most overlooked medical deductions that can help you keep more of your hard-earned money.
Health care expenses that are tax deductible
There are a number of medical expenses that are tax deductible, but many people are unaware of them. For example, you can deduct the cost of prescription drugs, eyeglasses, and contact lenses. You can also deduct the cost of travel to and from medical appointments, as well as the cost of lodging if you have to travel for treatment. If you have to pay for special equipment or services because of a medical condition, those expenses may also be deductible. Be sure to keep track of all your medical expenses so you can take advantage of these deductions.
Dental and vision care deductions
Dental and vision care are often overlooked when it comes to medical deductions, but they can be a great way to save money. Dental care can be deducted as a medical expense if it is necessary for the treatment of a medical condition. Vision care can also be deducted as a medical expense if it is necessary for the treatment of a medical condition.
Prescription medication deductions
Most people are aware that they can deduct medical expenses on their taxes, but there are a few other deductions that are often overlooked. For example, you can deduct the cost of prescription medication, as well as any costs associated with travel to and from medical appointments. You can also deduct the cost of health insurance premiums, as well as any out-of-pocket expenses not covered by your insurance. These deductions can add up, so be sure to take advantage of them if you are eligible.
Health insurance premiums
Your health insurance premiums are probably one of your largest medical expenses. But did you know that you may be able to deduct some of those costs on your taxes? The IRS allows you to deduct certain medical expenses, including health insurance premiums, as long as they meet certain criteria. So if you’re looking for ways to save on your taxes, be sure to check out this deduction.
Long-term care expenses
One of the biggest expenses in retirement is long-term care. Whether you need help with activities of daily living, such as bathing, dressing, and eating, or you require more intensive medical care, the costs can quickly add up. Fortunately, there are a few ways to save on long-term care expenses. One is to deduct them from your taxes. The Most Overlooked Medical Deductions That Can Save You Money
The Internal Revenue Service (IRS) allows you to deduct certain medical expenses, including long-term care, from your taxes. To qualify, you must itemize your deductions on Schedule A of your Form 1040. The deduction is limited to the amount of your medical expenses that exceed 7.5% of your adjusted gross income (AGI). So, if your AGI is $50,000, you can only deduct medical expenses that exceed $3,750.
In addition to the IRS deduction, you may also be able to take advantage of state tax deductions or credits for long-term care expenses. For example, Illinois offers a credit for long-term care insurance premiums, and California allows a deduction for certain in -home care services. So if you’re considering long-term care insurance or services, be sure to talk to your financial advisor about your options.
There are many medical deductions that people overlook, but can save you a significant amount of money. Be sure to take advantage of every deduction possible to keep more of your hard-earned money.