3 Tips for Itemizing Out-of-Pocket Medical Expenses on Personal Taxes

If you are attempting to claim the medical expenses deduction on your taxes, there are three things that you need to know when you itemize your claims. These three pieces of information will help you successfully claim the deduction so you can maximize your overall financial situation.StethoscopePic

Tip 1: You Cannot Itemize Expenses Which Are Reimbursed or Not Medically Necessary

All expenses which are reimbursed to you through your employer or health insurance carrier are not allowed to be deducted. You also cannot deduct expenses which are considered cosmetic. All non-prescription, over-the-counter drugs are also ineligible as well as other general health products like tooth paste, vitamins, or health foods.

Tip 2: Medically Necessary Procedures Are Deductible

There are many expenses for which you can qualify when you are itemizing your deductions. The IRS permits the deduction of the costs you incur in a multitude of health services related to your physical health. You can even itemize the costs associated with mental health, medications for various health conditions, or devices considered medically necessary such as prescription eye wear and dentures.

Tip 3: You are Not Eligible for this Deduction if Your Medical Expenses Are Less than the Standard Deduction

Claiming this deduction is only possible if the itemized deductions you possess exceed the value of the standard deduction. The standard deduction is based on your filing status, such as whether you file single or jointly, as well as your age and basic income information.

Use this information wisely to avoid unnecessary tax errors.

Image credit: AbiKhairulAizad^^