Medical & Dental Expenses

Schedule A can be used to deduct Qualified Medical Expenses Incurred within the year for the taxpayer, their spouse and their dependent are deductible to the degree that they were never reimbursed.

Medical Expenses AGI Limit

For 2017 and 2018 only, deduction of a taxpayer’s medical and dental expenses exceeding 7.5% of their AGI can be made on Schedule A (Form 1040). Post 2018, the 7.5% limit is increased to 10% of the taxpayer’s AGI.

List of Qualified Medical Expenses

Acupuncture
Air conditioner necessary for relief from allergies or other respiratory problems
Alcoholism treatment
Artificial limbs
Artificial teeth
Birth control pills prescribed by a doctor
Braille books and magazines used by a visually-impaired person
A clarinet and lessons to treat the improper alignment of a child's upper and lower teeth
Contact lenses, including equipment and materials for using contacts
Cosmetic surgery
Diet, special. When prescribed by a doctor, you can deduct the extra cost of purchasing special food to alleviate a specific medical condition
Doctor or physician expenses
Drug addiction treatment, including in-patient treatment, meals and lodging at a therapeutic center for drug addiction
Elastic hosiery to treat blood circulation problems
Exercise program if a doctor has recommended it as treatment for a specific condition
Extra rent or utilities for a larger apartment required in order to provide space for a nurse/attendant
Eye surgery, such as Lasik or a similar procedure, when it is not for cosmetic purposes only
Guide dog or other animal used by a visually-impaired, hearing-impaired or otherwise physically disabled person
Hospital care
Household help for nursing care services only
Insurance premiums for medical care coverage
Laboratory fees
Legal fees paid to authorize treatment for mental illness
Lifetime care advance payments
Lodging expenses while away from home to receive medical care in a hospital or medical facility
Long-term care insurance and long-term care expenses (there are limitations to what you can deduct)
Mattresses and boards bought specifically to alleviate an arthritic condition
Medical aids, including wheelchairs, hearing aids and batteries, eyeglasses, contact lenses, crutches, braces and guide dogs (and their care)
Medical conference admission costs and travel expenses for a chronically ill person or a parent of a chronically ill child to learn about new medical treatments. (But not the cost of meals and lodging while attending the conference)
Medicines and drugs
Nursing care
Nursing home expenses, including the entire cost of medical care, plus meals and lodging if the main reason for being in the home is to obtain medical care
Oxygen and oxygen equipment
Reclining chair bought on a doctor's advice by a person with a cardiac condition
Special education; tuition for sending a mentally impaired or physically disabled person to a special school that has resources to relieve the disability
Smoking cessation programs (does not have to be recommended by a physician)
Swimming (the cost of therapeutic swimming prescribed by a physician)
Telephone (the cost and repair of special telephone equipment for a hearing-impaired person)
Television (the cost of equipment used to display the audio part of a TV program for hearing-impaired persons)
Transplant of an organ (but not hair transplants)
Transportation costs for obtaining medical care
Travel expenses for parents visiting their child in a special school for children with drug problems, where the visits are part of the medical treatment
Weight loss program, if it is recommended by a doctor to treat a specific medical condition or to cure any specific ailment or disease
Whirlpool baths prescribed by a doctor
Wig for the mental health of a patient who has lost his or her hair due to a disease
X-ray services

Check out the complete list from IRS Publication 502.

Insurance Premiums

Insurance premiums spent on policies covering medical care are deductible. The amounts that are deductible are those that were spent on medical care policies that provide treatment to include:

Hospitalization, surgical services, X-rays, etc

Prescription drugs and insulin

Dental care

Replacement for lost or damaged contact lenses

Long-term care, subject to some limitations. Premiums paid through the Premium Tax Credit are not deducted. First complete Form 8962 - Premium Tax Credit, followed by Schedule A in the event that the taxpayer is qualified to claim the Premium Tax Credit.

Medical and Dental Insurance Premiums

Insurance premiums spent on policies covering medical care are deductible. The following treatment is covered by Qualified medical care policies:

Hospitalization, surgical services, X-rays, etc.
Prescription drugs and insulin.
Dental care.
Replacement for lost or damaged contact lenses.
Long-term care, subject to certain limitations.

Are not inclusive of payments in advance made of Premium Tax Credit. Taxpayers who qualify for the Premium Tax Credit are required to complete Form 8962 before proceeding to Schedule A .

Unless an amount is in Form W-2 Box 1, insurance premiums paid from an employer sponsored health insurance plan should not be included.

Self-employed health insurance deduction from Schedule 1 (Form 1040) may be used to reduce deductible amounts on Schedule A.

Hospital Care Including Meals and Lodging

Amounts spent for inpatient care at a hospital is deductible. This is inclusive of the cost of meals and lodging at the hospital if the main reason for being in the facility is to receive medical care.

For the individual receiving medical attention as well as the persons traveling with them, a deduction of up to $50 per night for lodging outside of a hospital or similar facility can be made. No deduction is however allowed for meals.

Qualified Long-Term Care Insurance Contracts

In the event that a contract meets the following conditions, the amount paid for qualified long-term care insurance will be deductible;

It is mandatory that it be guaranteed renewable

No cash surrender value is provided

Refunds and dividends in the contract can only be used in the reduction of future premiums or to increase future benefits. The refunds should not be refunds on the insured’s death nor should there be complete surrender or cancellation of the contract.

It mustn't reimburse expenses incurred for items or services that are to be reimbursed under medicare. The only exception to this is where the medicare is the secondary payer, or the contract makes periodic payments with disregard to expenses.

The age of the taxpayer, spouse or dependent limit the amount to be deducted for long term care insurance.

Tax Year	Age 40 or Less	Age 41 - 50	Age 51 - 60	Age 61 - 70	Age 71 and Over
2019	$420	$790	$1,580	$4,220	$5,270
2018	$420	$780	$1,560	$4,160	$5,200
2017	$410	$770	$1,530	$4,090	$5,110
2016	$390	$730	$1,460	$3,900	$4,870

Medical Standard Mileage Rate

2019 - 20¢ per mile

2018 - 18¢ per mile

2017 - 17¢ per mile

2016 - 19¢ per mile

Note: This is not tax advice. It is a guide on how to enter Medical and Dental Expenses into the Taxx Savage Pro program.

Additional Information:

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