Accounting - Tax Deductible Medical and Dental Expenses

An itemized deduction falls under one of the followingSuch purchases include vitamins and nutritional
categories: Medical and dental expenses, taxes paid,supplements prescribed by a doctor to treat a specific
interest, gifts and charity, casualty and theft losses,ailment. Expenses incurred by what is considered a
expenses and miscellaneous deductions. Taxpayersnon medical treatment such as a massage must be
who wish to claim medical and dental expenses mustproven as a legitimate medical deduction by the
use the itemize deduction option and presenttaxpayer.
documented evidence to substantiate the amountThe entire bill at a hospital or similar medical facility for
being claim. The itemized deduction option gives themeals and lodging is deductible. You may also deduct
taxpayers a larger total deduction. However, thethe expense of lodging if you or your dependents'
deduction must not exceed one-half of the taxpayer'smedical treatment is away from home and lodging is
adjusted gross income, but in order to qualify, the totalnecessary in order to receive the treatment provided
expenses claimed must exceed 7.5 per cent of theby a doctor. The lodging must be moderate, with no
taxpayer's adjusted gross income.element of personal pleasure, recreation or vacation.
Qualified medical and dental expenses are deductibleThe amount is limited to $100 for you and one other
for yourself, your spouse and dependents, includingperson.
anyone you claim as a dependent under a multipleHealth insurance premiums paid to cover your medical,
support agreement, but the agreement allows for onlydental and hospital expenses, including eyeglasses and
one of the people involved to claim the deduction.prescription drugs are deductible if it is part of your
Expenses paid for a child who receives more than halfadjusted gross income. This includes your premium for
of support from you are also deductible, however, youMedicare Part B. Reimbursement and damages from
are not entitled to a personal exemption for a childinsurance proceeds and Medicare will reduce your
who earned in excess of the allowed amount ofmedical expenses. If the reimbursement equals or
income.exceeds your medical expenses, your deduction will
Medical and dental Expenses for self-employedbe reduced to zero.
persons that have a net profit for the tax year, orYou may claim medical expenses for yourself, spouse,
share in a partnership or a shareholder in an Sdependents and anyone you claim as a dependent
corporation, may be able to deduct, as an adjustmentunder a multiple support agreement that is confined to
to income, the total amount paid for medical insurancea nursing home or home for the aged. The deduction
for yourself, spouse and dependents. This special taxincludes the entire cost of medical care, including meals
deduction is not deductible for any month you areand lodging. If the person is residing in a nursing home
eligible to participate in any sponsored health plan byfor reasons other than medical, the only deductible
your employer or your spouse's employer.cost is the actual medical expenses. This also applies
Travel expenses for your medical care are deductibleto rest homes and assisted-living facilities. Any non
when traveling to the doctor's office or a medicalmedical expenses are not deductible.
facility for treatment. If you use your car, a flat rate perThe cost of medical expenses for mentally or
mile assessment plus the actual expense of operatingphysically handicapped dependents attending a special
the car, such as gas, oil, repairs, parking and toll feesschool geared to improve the person's specific needs
are deductible. Cab fares incurred to travel locally toare deductible. The deduction includes all costs for
your doctor's office, he cost of a trip out of town totuition, transportation, meals and lodging. Schools that
visit a specialist and the cost of transportation to aqualify must offer programs that teach Braille or lip
different climate for health reasons are deductible.reading, help cure dyslexia, treat and care for the
Deductible travel expenses are allowed as a medicalmentally handicapped and persons with similar
deduction under the following conditions: When ahandicapped needs.
doctor prescribes trips to visit a child in an institution,Improvements to your home that aid in treating a
when anyone accompanies an individual for medicaldisease, such as adding required equipment, is
care who is unable to travel alone and the cost ofdeductible. However, the deduction is limited to the cost
travel to medical conferences in order to get the latestof the equipment or improvement, minus the increase
information on treatment for a chronically ill person.in value to your home.
Special medical expenses are deductible depending onDeductible medical and dental expenses are the total
the services provided. Payments to anyone who isexpenses paid and claimed, less what was reimbursed
unlicensed, but provided legal medical care andby insurance or any other source. The outcome is
legitimate purchases on the advice of a doctor toreduced by 7.5 percent of your Adjusted Gross
benefit you or your dependents' health are deductible.Income.