If you have a lot of medical expenses, you may be entitled to a tax deduction.
Medical expenses are an allowable tax deduction on your federal income taxes as an itemized deduction. However, only certain medical expenses qualify.
Types
Qualified medical expenses include preventative care, treatment and insurance premiums you pay out of pocket. Some common expenses include payments for doctor visits, prescription medicines, glasses or contact lens, hearing aids and surgery.
Other Qualifying Expenses
You can also deduct $0.23 per mile in 2012 to cover driving to your medical care and any tolls or parking fees.
Calculating Your Deduction
The value of your deduction is calculated by subtracting 7.5 percent of your adjusted gross income from your total medical expenses. If your adjusted gross income is $100,000 and your medical expenses are $17,500, for example, you could deduct $10,000.
Function
The medical expenses deduction is an itemized deduction on Schedule A, which means you must itemize your deductions to claim it. You should claim this deduction only if the total of your itemized deduction exceeds your standard deduction.
Time Frame
You claim the tax deduction for medical expenses in the year you pay for them, which may or may not be the same year you received the treatment.
Tags: medical expenses, itemized deduction, medical expenses, adjusted gross, adjusted gross income