Deducting Medical Expenses on Your Income Tax Return
The field of medicine covers many aspects of health and wellness, from diagnosis and treatment to medical research. Traditional modern medicine includes surgery, drugs and other therapies such as acupuncture and art therapy. Alternative or complementary medicines include herbal remedies and some forms of naturopathy.
A doctor is a person who has been trained in the art and science of assessing, treating and preventing disease using knowledge gained from training, experience and clinical judgment. A clinician is a health worker who interacts directly with patients, such as nurses, doctors and psychotherapists. A physician may be a GP, an internist, an oncologist or a surgeon.
A health care system is the organization that provides health services to a population. Health care systems are influenced by social and cultural factors, economic conditions and health policies. Access to healthcare depends on an individual’s ability to afford it and their level of health literacy. The provision of healthcare services is dependent on the availability of money, personnel and infrastructure, all of which are often limited by budget constraints, sociocultural expectations and personal limitations.
Medical research is the study of biology and its application to the development of new drugs, treatments and cures. This involves a wide range of scientific disciplines such as chemistry, biology, physics and pharmacology. The aim is to improve and extend the life of humans and animals through the prevention or treatment of diseases and their consequences, such as disability and death.
Some examples of medical expenses are eyeglasses, contact lenses, a hearing aid and dental work. The amount paid for a program to help you stop smoking is also considered a medical expense. However, you can’t deduct any expenses for a controlled substance that isn’t prescribed, such as marijuana or laetrile, even if it’s legal under state law.
You can usually deduct the cost of a wheelchair or other assistive device for yourself, your spouse or your dependents. You can also include in medical expenses the cost of modifying your home to make it accessible to someone with a physical disability. This might include adding handrails in the bathroom or grading the driveway to allow you to use a motorized scooter. However, you can’t deduct the cost of a home improvement made for a personal motive, such as making a room more attractive or convenient.
If you sell medical equipment or property that you deducted in an earlier year, use Worksheet D to figure your adjusted basis. You use this number to determine how much of your reimbursement is taxable. You must report any reimbursement you receive in a later year that wasn’t included in your 7.5% or 10% AGI limit for figuring your medical deduction. See Reimbursements in Pub. 525, Taxable and Nontaxable Income, for more information. You must also report on your return any amounts you received in a later year that were previously deducted as medical expenses. However, this doesn’t apply to amounts reimbursed by a flexible spending account or workers’ compensation insurance.
The field of medicine covers many aspects of health and wellness, from diagnosis and treatment to medical research. Traditional modern medicine includes surgery, drugs and other therapies such as acupuncture and art therapy. Alternative or complementary medicines include herbal remedies and some forms of naturopathy. A doctor is a person who has been trained in the art and science of assessing, treating and preventing disease using knowledge gained from training, experience and clinical judgment. A clinician is a health worker who interacts directly with patients, such as nurses, doctors and psychotherapists. A physician may be a GP, an internist, an oncologist or a surgeon. A health care system is the organization that provides health services to a population. Health care systems are influenced by social and cultural factors, economic conditions and health policies. Access to healthcare depends on an individual’s ability to afford it and their level of health literacy. The provision of healthcare services is dependent on the availability of money, personnel and infrastructure, all of which are often limited by budget constraints, sociocultural expectations and personal limitations. Medical research is the study of biology and its application to the development of new drugs, treatments and cures. This involves a wide range of scientific disciplines such as chemistry, biology, physics and pharmacology. The aim is to improve and extend the life of humans and animals through the prevention or treatment of diseases and their consequences, such as disability and death. Some examples of medical expenses are eyeglasses, contact lenses, a hearing aid and dental work. The amount paid for a program to help you stop smoking is also considered a medical expense. However, you can’t deduct any expenses for a controlled substance that isn’t prescribed, such as marijuana or laetrile, even if it’s legal under state law. You can usually deduct the cost of a wheelchair or other assistive device for yourself, your spouse or your dependents. You can also include in medical expenses the cost of modifying your home to make it accessible to someone with a physical disability. This might include adding handrails in the bathroom or grading the driveway to allow you to use a motorized scooter. However, you can’t deduct the cost of a home improvement made for a personal motive, such as making a room more attractive or convenient. If you sell medical equipment or property that you deducted in an earlier year, use Worksheet D to figure your adjusted basis. You use this number to determine how much of your reimbursement is taxable. You must report any reimbursement you receive in a later year that wasn’t included in your 7.5% or 10% AGI limit for figuring your medical deduction. See Reimbursements in Pub. 525, Taxable and Nontaxable Income, for more information. You must also report on your return any amounts you received in a later year that were previously deducted as medical expenses. However, this doesn’t apply to amounts reimbursed by a flexible spending account or workers’ compensation insurance.