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 7.5% of the taxpayer's adjusted gross income (AGI). 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 2011 to the following:
40 or under - $350
Over 40 - $660
Over 50 - $1,310
Over 60 - $3,500
Over 70 - $4,370
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 1 - 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 2012 is 23 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 1-Other Medical and Dental Expenses
Enter the taxpayer's medical and dental expenses 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: