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Medical and Dental Expenses

Tax Year 2013

 

This page of the Schedule A worksheet allows the user to enter items related to medical and dental expenses the taxpayer can deduct.

 

Automatic Calculation of Deduction
Qualified medical and dental expenses can be deducted from the taxpayer's income for those amounts that exceed 10% of the taxpayer's adjusted gross income (AGI) or 7.5% if the taxpayer or spouse are over age 65. These limits and the amount of the deduction are automatically calculated based on the information entered into the worksheet.

 

What Expenses are Deductible
Deductible medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. This includes the costs for equipment, supplies, diagnostic devices, along with dental expenses.

 

These expenses also include some extraneous items such as insurance premiums that cover the expenses of medical care (see below), including a limited amount paid for a qualified long term care contract (see limitation below), and transportation expenses (mileage) to get medical care.

 

The expenses must be primarily for the alleviation or prevention of a physical or mental defect or illness. They do not include expenses that are only beneficial to general health such as vitamins or vacation.

 

See IRS Pub. 502, Medical and Dental Expenses, for more information and details on capital expenditures for medical purposes, a list of specific expenses that are not deductible, and other important information.

 

When Expenses Are Deductible
The taxpayer can only include medical and dental expenses that were paid during the tax year, regardless of when the services were rendered. A payment is considered complete when the taxpayer mails it, or if paid by phone or online, when the funds are reported as deducted from the taxpayer's bank. If an expense is paid by credit card, the payment is considered complete when the charge is made to the credit card, and not when the taxpayer pays for that part of the balance of the credit card.

 

The taxpayer cannot include any expenses for which he or she was reimbursed or which were paid by an insurance company or other source regardless of who received the payment.

 

Whose Expenses Can Be Deducted
The taxpayer can generally deduct the medical and dental expenses he or she paid for the taxpayer, the spouse (if married when services were received or payment was made), or a dependent (if the person was a dependent when the services were received or when payment was made).

 

A parent can claim the expenses he or she paid for his or her child regardless of which parent is eligible for the dependency exemption.

 

See IRS Pub. 502, Medical and Dental Expenses, for more information on deducting expenses for dependents under a multiple support agreement. Also, see that publication for more information on deducting the medical expenses of a deceased individual.

 

Insurance Premiums and Related Medical Expenses
There are certain methods that must be used to calculate which insurance premiums can be deducted and how much. Additionally, there are certain limits on medical expenses that are reimbursed by health insurance plans and for disbursements from tax-free plans. See IRS Pub. 969, Health Savings Accounts and Other Tax-Favored Health Plans in addition to Pub. 502 above for details on deducting these types of expenses.

 

Qualified Long-Term Care Contract Limits
See the IRS Pub. 969 above for the requirements of a qualified long-term care contract. The amount of premiums that can be deducted for qualified long-term care contracts are limited in 2013 to the following:

  • 40 or under - $360
  • Over 40 - $680
  • Over 50 - $1,360
  • Over 60 - $3,640
  • Over 70 - $4,550

 

Caution: The taxpayer cannot deduct insurance premiums or any other medical expenses paid with pretax dollars.

Directions for entering information into the Medical and Dental expenses worksheet are as follows:
Line 1A - Mileage Expenses Enter the number of miles driven by the taxpayer's own vehicle to get medical or dental care only if the taxpayer has decided to use the standard medical mileage deduction.

 

The Amount of the deduction will be automatically calculated.

Standard Medical Mileage Deduction explained
The standard medical mileage deduction in 2013 is 24 cents per mile for miles driven for medical reasons. Alternatively, the actual cost of gas and oil can be deducted below. The standard mileage deduction cannot be used in addition to the cost of gas and oil.

 

Any expenses for parking and tolls for medical reasons should be entered below, regardless of the method for expensing mileage. Additionally, other transportation costs such as bus fares, taxi expenses, and special medical travel vehicle costs can be deducted below.

 

Do not include any expenses for depreciation of the vehicle, insurance, general repair, or maintenance expenses-these costs are not deductible for medical reasons.

Line 1B - Out of Pocket Expenses Enter the amount of any out of pocket expenses for each item listed.
Line 1C -Other Medical and Dental Expenses Enter any other medical and dental expenses not entered above after the taxpayer reduces these expenses by any payments received from insurance or other sources. Describe each expense by description and enter each expense as a separate entry.

 

The rules for deducting medical and dental expenses are very specific. See below for an extended list of examples of expenses that may and may not be deducted. See IRS Pub. 502, Medical and Dental Expenses for further guidance and specific information on the examples below.

 

Directions for adding entries
Click the add icon to save the line entry. A new line will appear for an additional entry if needed.

 

The taxpayer can edit the information by changing the text or amounts in the boxes after the line entry has been saved, or delete the line entry by clicking on the delete icon to the left of the line item.

 

The button must be clicked to save any changes that have been made to the line entries.

Examples of Medical and Dental Payments The Taxpayer May Deduct:
  • Abortion,
  • Acupuncture,
  • Alcoholism treatment,
  • Ambulance,
  • Annual physical exam,
  • Artificial limb,
  • Artificial teeth,
  • Autoette (wheelchair),
  • Bandages,
  • Birth control pills,
  • Body scan
  • Braille books and magazines,
  • Capital expenses (see IRS Pub. 502, Medical and Dental Expenses for details),
  • Car equipment and special designs for disabilities and cost of operation (above),
  • Chiropractor,
  • Christian Science Practitioner care,
  • Contact lenses,
  • Crutches,
  • Dental treatment,
  • Diagnostic devices,
  • Disabled dependent care expenses,
  • Drug addiction treatment,
  • Drugs (medicine)
  • Eyeglasses,
  • Eye surgery,
  • Fertility enhancements that are medical,
  • Founder's fee for Lifetime Care Advance Payments,
  • Guide dog or other service animal,
  • Health institute fees for treatment which meets medical expenses requirements,
  • Health Maintenance Organization fees, which are treated as insurance premiums,
  • Hearing aids,
  • Home care for nursing services,
  • Home improvements (see capital expenses above),
  • Hospital services,
  • Insurance premiums for medical and dental services, including Medicare B and D, but not Medicare A (except under certain voluntary enrollment conditions),
  • Intellectually and developmentally disabled special home (not home of relative) on the recommendation of a psychiatrist,
  • Laboratory fees,
  • Lead-based paint removal under certain conditions,
  • Learning disability and special education,
  • Legal fees to authorize treatment for mental illness,
  • Lifetime care advance payments,
  • Lodging in a hospital or other medical facility, and other lodging up to $50 per night if certain requirements are met,
  • Long-term care which are qualified,
  • Meals under certain circumstances,
  • Medical conferences under certain circumstances,
  • Medical information plan,
  • Medicines,
  • Nursing Home,
  • Nursing Services,
  • Operations (except for unnecessary cosmetic surgery),
  • Optometrist,
  • Organ donors and transplants,
  • Osteopath services,
  • Oxygen,
  • Physical examination,
  • Pregnancy test kit,
  • Prosthesis,
  • Psychiatric care,
  • Psychoanalysis,
  • Psychologist,
  • Special education,
  • Sterilization
  • Stop-smoking programs (cessation programs),
  • Surgery (see operations above),
  • Telephone equipment for hearing-impaired,
  • Television for hearing-impaired,
  • Therapy,
  • Transplants,
  • Transportation under certain conditions,
  • Trip expenses if the primary reason for trip is medical,
  • Tuition under certain circumstances,
  • Vasectomy,
  • Vision correction surgery
  • Weight-loss program for certain diseases,
  • Wheelchair,
  • Wigs under certain circumstances,
  • X-Rays.
Examples of Medical and Dental Payments The Taxpayer May Not Deduct:
  • Baby-sitting, childcare, and nursing services for a normal, healthy baby,
  • Controlled substances in violation of federal law,
  • Cosmetic surgery that is not required and not directly related to a congenital abnormality, personal injury resulting from an accident, or a disfiguring disease,
  • Dancing service,
  • Electrolysis or hair removal,
  • Flexible spending account,
  • Funeral expenses,
  • Future medical care,
  • Hair transplant,
  • Health club dues,
  • Health coverage tax credit deducted expenses,
  • Health savings account deducted expenses,
  • Household help (even when recommended by a doctor),
  • Illegal operations and treatments,
  • Insurance premiums except those specifically listed as deductible,
  • Maternity clothes,
  • Medical Savings Account distributions,
  • Medicines and drugs from other countries, except those imported legally and prescribed,
  • Nonprescription drugs and medicines, except insulin
  • Nutritional supplements unless prescribed by a medical practitioner for treatment of a specific medical condition,
  • Personal use items except under certain conditions,
  • Swimming lessons,
  • Teeth whitening,
  • Veterinary fees,
  • Weight-loss programs except under certain conditions.
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