The answer is yes, with two essential conditions that have to be met. Details of what expenses may be deductible are below, but these two basic conditions apply:
ONE: Deductions must be Itemized
First, you must itemize deductions using a Schedule A rather than taking the standard deduction. The standard deduction works best for the majority of taxpayers. For tax year 2024 it is $14,600 for single tax filers and $29,200 for married taxpayers filing jointly.
For many taxpayers, the standard deduction typically exceeds the total deductions you would get from mortgage interest, property taxes, charitable deductions, medical expenses and other deductions that could otherwise be itemized. However, if the taxpayer, spouse or dependent has significantly high medical expenses in a particular tax year, it might make sense to itemize.
TWO: Deductions must be for Qualified Medical Expenses
The IRS defines medical care expenses as “payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.”
The key words are “disease” and “treatment.” Thus, expenses that may contribute to your overall health, such as special health foods, supplements or a gym membership or trainer, are not deductible. However, if you are incurring these expenses as part of treatment plan for a disease, such as obesity, then they may be deductible.
Medical expenses that are usually deductible include the following:
• Payments for fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists and nontraditional medical practitioners
• Payments to participate in a weight-loss program for a specific disease or diseases diagnosed by a physician including obesity. (Note: this does not include ordinary payments for diet food items or payments for your gym or health club dues)
• Payments for insulin and for drugs that require a prescription for their use.
How Much Is Deductible?
It’s important to note that you can only deduct the amount of your total medical expenses that exceeds 7.5% of your adjusted gross income (AGI). For instance, if your AGI is $50,000, you can only deduct medical expenses over $3,750 ($50,000 x 7.5%).
If you have questions about this featured topic or other accounting and tax related topics, please do not hesitate to contact us at 727-327-1999 OR [email protected].
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