Even if you have health insurance, out-of-pocket medical expenses can quickly add up, especially if you have a condition requiring long-term care. Fortunately, you might be able to deduct some of these expenses on your tax returns, relieving the burden on your finances and decreasing your liability. However, not all medical expenses qualify, and deducting out-of-pocket costs may not make sense for everyone.

Who Can Take the Deduction

For most taxpayers, taking the standard deduction is the best way to reduce your taxable income. However, if you do itemize your deductions, you may deduct any qualified medical expenses that exceed 10% of your Adjusted Gross Income (AGI).

Qualified Medical Expenses

While the threshold may seem high, a wide range of medical expenses may qualify as deductible expenditures. For instance, your health insurance premiums may be deductible if they aren't paid for out of your pre-tax earnings. Co-pays, coinsurance, and any services not covered by your insurance will also qualify as deductible expenses.

Other commonly overlooked deductions include breast pumps and other lactation devices, as well as part of the cost of prescription formula. If you had to install handrails and other safety equipment because of mobility issues, you may be able to write off those expenses on your tax return, as well. Patients who have to travel out of town to seek medical treatment can also cite their mileage, transportation costs, and a portion of their lodging expenses.

The complexity of the tax code can be confusing for anyone, which is why Texarkana, TX, residents rely on Selph and Friday, CPA for detailed guidance. Drawing on their in-depth knowledge and experience, they’ll help decide what expenses are deductible, lower your obligation as much as possible, and prepare your tax return for you. Visit their website for an overview of their services, follow their Twitter for regular tips, or call (903) 792-0281 now to schedule a consultation.