A part of the Itemized Deduction: Medical & Dental Expenses

Taxpayers may utilize the Itemized Deduction when filing taxes if it’s larger than the Standard Deduction.

Another item that comprises the itemized deduction is the Medical and Dental Expenses.

The more common and substantial payments for this deduction include but are not limited to payments for:

? Insurance premiums for medical and dental care and long-term care.

? Doctor visits and co-pays include dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners.

? Prescription drugs, inpatient hospital or nursing home care.

Some items that are not deductible are funeral expenses, nonprescription medicines, toothpaste, toiletries, or cosmetics, a trip or program for general health improvement, and most cosmetic surgery.

As part of the overall Itemized deduction, there is an important qualification to bear in mind as it relates to the amount of medical expense allowed:

The medical expenses deductible is limited to the amount above 7.5% of the taxpayer's adjusted gross income.

So, for example, if the adjusted gross income of the taxpayer is $100,000, the first $7,500 (7.5%) is not deductible while anything above can be utilized towards the Medical and Dental Expenses part of the overall Itemized Deduction.

Self-employed taxpayers may be able to deduct insurance premiums without being subject to the 7.5% limitation above.

Have a question about this or another tax-related matter? Feel free to reach out!

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