Yes—the medical expense deduction lets you recoup some of the cost of unreimbursed expenses from doctor visits, prescriptions, and other medical expenses on your tax return.
First, note that to deduct a medical expense, it has to be an unreimbursed expense. That means if you pay for an expense out-of-pocket but get reimbursed by your insurance company or anyone else, you can’t claim that expense as paid by you.
You may be able to deduct expenses like medical supplies, dental treatments, and insurance premiums. See What Medical Expenses are Deductible? Medical expenses for your spouse and qualifying dependents naturally count too.
The rules for deducting medical expenses may seem overwhelming, but they are actually pretty straightforward:
You can deduct any expense for the diagnosis, curing, treating, or prevention of disease affecting any part or function of the body. Deducting costs must also either alleviate or prevent a physical or mental defect or illness. Expenses geared more toward general health, like vitamins and vacations, are generally not deductible.
Yes, you can only deduct the amount that exceeds 7.5% of your adjusted gross income (AGI) for 2020.
You can deduct any medical expense for you, your spouse, and qualifying dependents. If you’re wondering who counts as a qualifying dependent, see Who Can Be Claimed as a Dependent? If you’re claiming expenses for your spouse, you must have been married at the time your spouse received service OR when you paid the expense.
If you’re divorced or legally separated, the expenses paid by each parent for a dependent child can be claimed on separate returns. If you and several other people help cover medical expenses under a multiple support agreement, only the person claiming the dependent can claim the deduction.
If claiming deductions for a deceased taxpayer, the medical expenses are included on the decedent’s final return. You can also include expenses of the decedent’s spouse and dependents, if filing jointly. The expenses must be paid within the one-year period starting the day after death. You may also file an amended return for the deceased claiming the deduction on the previous year’s return.
To claim the medical expense deduction on your Tax Office & Associates™ return, simply enter your expenses in our tax-filing walkthrough. Don’t worry about whether you have enough expenses to itemize: Just add the expenses, and if you have more itemized deductions than the standard deduction, we’ll use that for you automatically.
Making your taxes as simple as possible is what we’re all about—don’t forget to call us to get started today!
Also see Claiming a Child When Divorced