- You can deduct medical expenses you paid for yourself, your spouse, and your dependents using your own money for which you did not receive a refund from your employer and/or insurance company. You can claim only the medical and dental expenses you paid during the tax year, regardless of when the services were rendered. For tax purposes, the date of payment depends on the ways you pay such expenses. If you pay by cash, it is the actual day you pay; if you pay by check, it is the day you send or deliver it. If it is through an "online" or "pay-by-phone" account, it is the date reported on the statement. But if you pay by credit card, it is the day the charge is made and not when you actually pay such charged amount.
You need to keep all the receipts as your evidence just in case you're audited. - You can claim the insurance premiums you pay during the tax year for medical care policies that cover dental, hospitalization, X-rays, surgical services, insulin, prescription drugs, physical examination, diagnostic test, false teeth, eyeglasses, artificial limbs, contact lenses, wheelchair, crutches, hearing aids and qualified long-term care services.
According to IRS.gov, "Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are: (1) required by a chronically ill individual, and (2) provided pursuant to a plan of care prescribed by a licensed health care practitioner." - You can also deduct Medicare premiums you pay during the tax year. If you voluntarily enroll for Medicare A because you are not covered under Social Security (or were not a government employee who paid Medicare tax), you can deduct the premiums. If you have Medicare B, which is a supplemental medical insurance, you can claim such amount. You can also include your payments for Medicare D because it is a voluntary insurance program for prescription drugs intended for people with Medicare A or B.
- You can also deduct the medical bills you pay during the tax year that are not covered by your insurance policies, such as co-pays, prescribed medicines, hospital and medical services fees, bandages, diagnostic devices, wages for nursing services, removal of lead-based paint, oxygen and oxygen equipment. You can also claim the costs of meals and lodging at a hospital mainly for medical treatment. Special education for physically and mentally disabled people as well as guide dogs or other animals helping them can be included as medical expenses. Programs intended to quit smoking and/or lose weight in order to treat specific illness or illnesses (including obesity) diagnosed by a doctor are considered medical bills. Transportation expenses, such as taxi, train, bus, plane fares or ambulance service for the patient and companion if needed are also tax deductible. If you use your car for a medical reason, claim the amounts you paid for actual gas, oil, tolls and parking fees. Expenses for treating drug, alcohol, psychiatric and psychological problems can be deducted.
- If you are self-employed and have net profit for the year, you can deduct the health insurance costs paid on behalf of yourself, your spouse and your dependents. You can claim it as an adjustment to income, but it cannot be more than your business earned income.
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