Medical and Dental
If you itemize your
deductions on Form 1040, Schedule A, you may be able to deduct
expenses you paid in 2010 for medical care – including dental –
for yourself, your spouse, and your dependents.
Here are six things
to know about medical and dental expenses and other benefits.
You may deduct
only the amount by which your total medical care expenses
for the year exceed 7.5 percent of your adjusted gross
income. You do this calculation on Form 1040, Schedule A in
computing the amount deductible.
You can only
include the medical expenses you paid during the year. Your
total medical expenses for the year must be reduced by any
reimbursement. It makes no difference if you receive the
reimbursement or if it is paid directly to the doctor or
You may include
qualified medical expenses you pay for yourself, your
spouse, and your dependents, including a person you claim as
a dependent under a multiple support agreement. If either
parent claims a child as a dependent under the rules for
divorced or separated parents, each parent may deduct the
medical expenses he or she actually pays for the child. You
can also deduct medical expenses you paid for someone who
would have qualified as your dependent except that the
person didn't meet the gross income or joint return test.
A deduction is
allowed only for expenses primarily paid for the prevention
or alleviation of a physical or mental defect or illness.
Medical care expenses include payments for the diagnosis,
cure, mitigation, treatment, or prevention of disease, or
treatment affecting any structure or function of the body.
The cost of drugs is deductible only for drugs that require
a prescription except for insulin.
You may deduct
transportation costs primarily for and essential to medical
care that qualify as medical expenses. The actual fare for a
taxi, bus, train, or ambulance may be deducted. If you use
your car for medical transportation, you can deduct actual
out-of-pocket expenses such as gas and oil, or you can
deduct the standard mileage rate for medical expenses. With
either method you may include tolls and parking fees.
from Health Savings Accounts and withdrawals from Flexible
Spending Arrangements may be tax free if you pay qualified
include premiums you pay for:
Life insurance policies
Policies providing payment for
loss of earnings (disability
Policies for loss of life, limb,
Policies that pay you a
guaranteed amount each week for
a stated number of weeks if you
are hospitalized for sickness or
part of your car insurance
premiums that provides medical
insurance coverage for all
persons injured in or by your
car, because the part of the
premium for you, your spouse and
your dependents is not stated
separately from the part of the
premium for medical care for
information on medical deductions and benefits, you can review Publication
502, Medical and Dental Expenses or Publication 969, Health
Savings Accounts and Other Tax-Favored Health Plans, available
or by calling 800-TAX-FORM (800-829-3676).