Medical Deductions You Don’t Want to Miss

It’s true: Unless you itemize your deductions on Schedule A and your medical expenses are more than 7.5% of your adjusted gross income (AGI), you can’t deduct them on your tax return.

But what many folks don’t know is that there are quite a few allowable deductions that fall into that category — some of which may be surprising that you don’t want to ignore.

Most people understand the normal deductions, including fees for:

• Diagnosis
• Cure
• Mitigation
• Treatment
• Prevention
• Equipment
• Supplies
• Diagnostic devices

But the IRS also considers the following deductions allowable (Tax Topics – Topic 502 Medical and Dental Expenses):

• Acupuncturists
• Eye doctors
• Occupational therapists
• Some weight-loss programs, foods, and health memberships if prescribed by your doctor
• Transportation costs to and from medical care at 19 cents per mile from January 1 to June 30, 2011, and 23.5 cents per mile from July 1 to December 31, 2011
• Qualified long-term-care services
• Limited amounts paid for any qualified long-term-care insurance contracts
• The cost of a medical conference (registration fees) if you suffer from a related chronic disease
• Medical insurance premiums, but not pre-tax salary contributions you make to your employer-sponsored health insurance plan
• Amounts you pay — if not covered by Social Security — for Medicare B supplemental insurance, Medicare D insurance, and Medicare A premiums
• Even if your former spouse claims your children as dependents, you can still deduct any qualifying medical bills you pay

Lastly, don’t forget about those contributions you make to a health-savings account (HSA). While not considered medical expenses, you can reduce your income by deducting 100% of your qualifying HSA contributions even if you don’t itemize deductions.