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Medical Expense Deduction List For Taxes

I wasn’t aware of how extensive the medical expense deduction list is. I had no idea that I could deduct my health insurance premiums. From my research, most things are deductible except for:

  • cosmetic procedures
  • health club dues
  • OTC meds

I know that some of my colleagues still use the standard deduction for its simplicity. But it makes more sense financially to itemize your deductions (Schedule A) because of the larger tax-break.

What sucks a little is that there is a 10% floor which you must reach before deductions can be taken. It’s 10% of your AGI (adjusted gross income). So if you grossed $150k for the year and your AGI was $100k then only the amount above $10,000 would be deductible.

If you spent only $8,000 on medical expenses then you wouldn’t be able to have a medical expense deduction at all. If you spent $12,000, however, you could deduct $2,000 from your AGI.

The numbers make more sense when you earn less and the ratio of healthcare expenses to income becomes more meaningful. If you grossed $80,000 and your AGI WAS $40,000 then anything past $4,000 would be deductible.

If you are self-employed it wouldn’t be hard to have some impressive deductions. The more deductions you have the lower your AGI which means the lower the 10% floor will be.

 

Medical Expense Deduction List

 

  1. Abortion
    • all costs associated
  2. Acupuncture
    • doesn’t have to prescribed
  3. Alcoholism
    • related transportation
    • inpatient/outpatient treatment
    • meals expenses
  4. Ambulance
  5. Dental Expenses
    • except for whitening
  6. Prescription Medications
    • includes BCP’s
    • excludes medical marijuana
    • apparently no OTC’s
  7. Lactation Expenses
    • breast pumps
  8. Drug Addiction Treatment
  9. Eye Exams
    • including eye glasses
  10. Eye Surgery
    • including corrective laser surgery
  11. Fertility Enhancement
  12. Guide Dog or Service Animal
    • including all the animal related care
    • including veterinary care
  13. Health Institutions Costs
    1. yoga retreats?
    2. only requirement is that it’d be prescribed by a physician
  14. Insurance Premiums
    • I had no fucking clue I could deduct my insurance premiums
  15. Hearing Aids
  16. Home Care
    • nursing services
  17. Lab Fees
  18. Lead-Based Paint Removal
    • must be from a child having had lead poisoning
  19. Special Education
  20. Long-Term Care Premiums & Services
  21. Medical Conferences
    • if you attend to learn more about your chronic illness
  22. Oxygen
  23. Pregnancy Test Kit
  24. Psychiatric Care
  25. Sterilization
  26. Smoking Cessation
  27. Transportation
    • related to your health care
  28. Weight Loss Program
    • associated with a diagnosis “obesity”
    • back pain or neuropathy will count

 

 

 

 

 

 

 

2 replies on “Medical Expense Deduction List For Taxes”

So if I’m an Independent contractor, I can deduct my health insurance premiums? Does the 10% floor apply to that also? Thanks so much!

The simple answer is that if you are an independent contractor then paying for your own health insurance is a business expense because you wouldn’t have it otherwise as an employee. Hence it’s a straight deduction against the income you earn as this independent entity and it won’t have to meet the 10% floor.

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