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Tips for Deducting Medical Expenses

With the coronavirus running rampant, the average medical expenses were higher than usual for millions of Americans in 2020. If you are one of those people who have high medical expenses, you may be eligible for a tax break. You can deduct qualified medical expenses from your tax return, allowing you to keep more money in your pocket. Here are some tips for deducting medical expenses.

Blue piggy bank with band-aids on its' side. A roll of gauze, surgical scissors, and a small block shaped like a hospital are next to it.

Figure out your total medical expenses for the year.

To figure this out, you must first calculate the total cost of your medical expenses for the year. You can deduct up to 7.5% of your AGI (adjusted gross income). For example, say you have an AGI of $20,000 and your total medical expenses equal $5,000. You would take $20,000 and multiply it by 0.075 (7.5%). That would equal $1,500. $1,500 would be the deductible amount, in this case, meaning your medical expenses come out to $3,500 instead of $5,000.

Keep track of all expenses that were not reimbursed or covered by your insurance.

Qualifying medical expenses are categorized as medical expenses that were NOT reimbursable. This includes:

  • Preventative care
  • Treatment
  • Surgeries
  • Dental care
  • Vision care
  • Psychologist visits
  • Psychiatrist visits
  • Prescription medications
  • Glasses
  • False teeth (dentures)
  • Hearing aids
  • Mobility aids
  • Insulin
  • Long term care

Cosmetic surgery is not typically a qualified medical expense. However, if it is medically necessary, then it will qualify.

Keep track of mileage and mode(s) of transportation for all medical-related transportation.

If you use your own car, you should keep track of your mileage when going to and from medical-related appointments. The reimbursement rate in 2021 is 16 cents per mile. If you find yourself not being able to travel without medical attention, you can also deduct the cost of ambulance services. Other deductions include, but are not limited to, bus, taxi, or plane fares, transportation of a nurse who is able to give injections, or conduct other life-saving interventions if the patient cannot travel to medical appointments alone. There are other deductions of this type that R&G Brenner can help you figure out if you qualify for reimbursement or not. 

You may be able to save thousands of dollars just from deductions due to your medical expenses. You’ve already spent so much on your medical expenses. Now, it’s time to let a tax specialist at R&G Brenner review, confirm, and make sure you get reimbursed for some of them. 

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