![]() You generally can deduct medical expenses for yourself as well as those paid for a spouse or a dependent. Prescription medications and durable goods such as glasses, false teeth, and hearing aids are also deductible.Īnd almost all after-tax insurance premiums are deductible. Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and other medical practitioners all are deductible. The IRS allows taxpayers to deduct out-of-pocket, unreimbursed medical expenses such as hospitalizations, preventative care, and surgeries. If the example above were for tax year 2020, none of the medical expenses would be deductible and it would not be worth itemizing. Remember, however, that in 2020 the allowable deduction threshold will rise to 10%, meaning it will be even more difficult to deduct medical expenses. With the standard deduction being $12,200, one can see it would be worth itemizing - and those $1,500 in medical expenses put you over the top! The income tax, property tax, mortgage interest, and donations are dollar-for-dollar deductions.īut to calculate the medical deduction we first must multiply the taxpayer’s AGI of $60,000 by 7.5% (0.075) to calculate a threshold of $4,500. The taxpayer also has $6,000 in medical expenses $2,000 in state income taxes $3,000 in property taxes $5,000 in mortgage interest and $2,000 in charitable donations to deduct. Medical Expense Deduction ExampleĬonsider a single filer with an adjusted gross income of $60,000 for the 2019 tax year. (2) Once that hurdle is cleared, the taxpayer’s total itemized deductions must exceed his or her standard deduction amount for his or her filing status. Only the excess counts toward the deduction. (1) The amount of qualified medical expenses must exceed 7.5% of the taxpayer’s adjusted gross income for tax year 2019 and 10% of the taxpayer’s adjusted gross income for 2020. The formula for deducting medical expenses has a few twists and turns.īefore benefiting from these expenses, there are two hurdles to clear: ![]() How to Calculate the Medical Expense Deduction They are the first item that appears on Schedule A, right ahead of taxes and interest deductions. Medical expenses are claimed on Form 1040, Schedule A. Where to Claim the Medical Expense Deduction ![]() The taxpayer can deduct qualified medical expenses paid during the tax year for himself and his dependents. The IRS allows taxpayers to deduct qualified medical expenses if the taxpayer itemizes and meets specific thresholds. Medical Expense Deduction Overview What Is the Medical Expense Deduction?
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