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Back to: 2007 Income Tax

TIPS FOR 2007 ITEMIZED INCOME TAX DEDUCTIONS:
MEDICAL AND DENTAL EXPENSES


Are all my medical and dental expenses deductible?

  • Your Medical and Dental Expenses must be in total more than 7.5% of your Adjusted Gross Income (AGI) before you can take the deductions.
  • Only the amounts of medical and dental expenses paid during the tax year are deductible, but only if you didn't receive insurance or other reimbursement to cover the medical expenses. You must reduce your total medical expenses for the tax year by all reimbursements for medical expenses during that year. You don't have medical deductions if you are reimbursed for all of your medical expenses.


Whose medical or dental expenses can you deduct?

  • those of yourself, your spouse or your dependent if you have paid for the expenses. A dependent is a US citizen or national, or a resident of the US, Canada or Mexico and a qualifying child or qualifying relative.
  • those of your legally adopted child, if the child is your dependent (see above), also if you pay an adoption agency for medical expenses, but only if these expenses are made after the adoption negotiation began.
  • the expenses of your child if you are a divorced or separated parent: see qualifying child.
  • those of a qualifying relative
  • those of decedent spouse or dependents (see qualifying child or qualifying relative) - the expenses must be paid within a year after the date of death.


File married jointly or separately?

  • If you're spouse got more medical expenses than you - consider to file separate returns, it could save you money.


Medical and dental expenses to include:

  • Bandages
  • Birth control pills (prescribed)
  • Cosmetic surgery - if it is medical necessary for your health, after an accident, disease or birth defect
  • Diagnosis, cure, treatment or prevention of a mental or physical defect or illness
  • Hospital lodging (not more than $50 per night per person) and meals during medical treatments
  • Dog or attributes to assist someone with physical disabilities
  • Fees paid for a companion and guide of a blind person
  • Fertility procedures (some of them)
  • Home modifications or improvements to accommodate a handicapped person
  • Hospital services fees (nursing services, surgery, therapy, doctors, dentists, etc.)
  • Laser Eye Surgery - even if your insurance doesn't cover it
  • Lead based paint removal
  • Legal abortion
  • Legal operation to prevent having children
  • Legal fees to obtain guardianship over a mental patient who refuses to take voluntarily therapy
  • Life care fee (part of) paid to retirement home for medical care
  • Medication (prescribed)
  • Organ donor expenses
  • Oxygen equipment and oxygen
  • Physical and dental exams
  • Premiums you paid for insurance that covers the expenses of medical care
  • Prepaid medical expenses are only deductible in the year of treatment
  • Prescribed drugs designed to alleviate nicotine withdrawal
  • Service from doctors, nurses, dentists and other medical practitioners
  • Stop-Smoking programs
  • Special education for mentally or physically disabled persons
  • Special items: wheelchair, wig, glasses etc. if its essential to your mental health
  • Taxes: Social Security Tax, Medicare Tax, FUTA and state employment tax for worker providing medical care
  • Transportation paid to get medical care: 20 ct a mile if you use your car for medical reasons
  • Weight-loss programs: only when prescribed by a physician as treatment for a disease

Medical and dental expenses NOT to include:

  • General health expenses, even if they are recommended by a doctor
  • Illegal operation or treatment
  • Marijuana and other controlled substances - even if it is recommended by a physician
  • Medicine without prescription
  • Medical expenses paid for someone other than yourself - spouse, dependent - when you paid the provider of the medical service directly.
  • Nonprescription nicotine gum and/or patches
  • Policies providing payment¬† for loss of life, limb etc.
  • Prepaid medical expenses are only deductible in the year of treatment
  • Surgery for purely cosmetic reason
  • Sex change operations and related medications, treatments and transportations
  • Tooth whitening

Impairment-related Work Expenses - business or medical
If you're disabled and you have to make expenses that are necessary for you to be able to work, you can take a business deduction. The business deduction for impairment-related work expenses is not subject to the 7.5% limit that applies to medical expenses.

If you have impairment-related work expenses, complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, and attach it to your Form 1040.


Back to: 2007 Income Tax


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