If your eligible medical expenses exceed 7.5% of your AGI, you are allowed to deduct medical expenses. If you or your dependents have been in the hospital or had other costly medical or dental expenses, keep those receipts, they could help cut your tax bill. The IRS Fresh Start Initiative can help you sort out your tax deductions if you have any further questions, comments, or concerns.
How Do I Deduct My Medical Expenses?
Your medical expenses may be tax-deductible under certain circumstances. Taxpayers who have eligible, unreimbursed medical expenses totaling more than 7.5% of their 2021 AGI can deduct them on their 2022 tax returns.
For example, if your AGI is $40,000, anything over $3,000 in medical expenses may be deductible. Another example is if you had $10,000 in medical bills, $7,000 of them could be deductible.
What Counts As A Medical Expense?
IRS Schedule A is the form that you will be deducting your medical expenses. Below are a few medical expenses that can be deducted from your taxes.
Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and other medical practitioners
Hospital and nursing home care
Weight-loss programs for doctor-diagnosed diseases, including obesity (but diet food and health club dues usually don’t count)
Insulin and prescription drugs
Dentures, reading or prescription eyeglasses, contacts, hearing aids, crutches, wheelchairs, and service animals
Transportation costs to and from medical care
Insurance premiums for medical care or long-term care insurance if they’re not paid by your employer and you pay out of pocket after taxes
What Is Not Tax-Deductible?
You cannot deduct any medical expenses that are covered by your insurance or employer. Furthermore, cosmetic procedures are often disallowed by the IRS. Nonprescription medications and other purchases for general health, such as toothpaste, vitamins, diet food, and nonprescription nicotine products are normally not deductible. You also can’t deduct medical expenses paid in a different year.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.