Health Insurance, Medical Expenses, and Tax Time

Even if you have not opened up a Health Savings Account (HSA), when it comes to tax time you may be entitled to a healthy deduction for your health insurance premiums and other medical expenses. If you itemize, you can begin to deduct medical expenses including the costs of individual medical coverage premiums once the total costs exceed 7.5 % of you adjusted gross income. Now that may sound like a lot of money and it usually is, but you may be surprised at the latitude the IRS gives at to what is considered a medical expense, and when you factor in all of the expenses that you can deduct, achieving that 7.5% may be easier then you think.

When it comes to the cost of your medical insurance, health insurance premiums, including Medicare B supplemental medical insurance premiums, and Part D prescription drug assistance plans are all deductible. Keep in mind that when you are totaling up your overall medical expenses you must subtract any reimbursements paid directly to you from your medical insurance company.

The obvious medical expenses are all tax deductible after you achieve that 7.5%, this includes doctors visits of course, drugs, lab tests, dental and vision visits. But many things that may not be so obvious have also been accepted as legitimate medical expenses by The IRS.  Alternative practices including acupuncture, chiropractic care, electro-shock treatments, message therapy, and hydrotherapy, as are many other Complementary and Alternative medicine practices, all are tax deductible. Interestingly enough even in States where the use of medical marihuana is permitted and it has been prescribed by a physician, the costs of medical marihuana IS NOT tax deductible. Hearing aids, eyeglasses, walkers, crutches canes, wheel chairs all are fairly obvious medical expenses, but if you have to put in a new air-conditioning in your home because of allergies or Asthma that too could be a tax deductible medical expense.

Medically prescribed stop-smoking medications or programs are tax deductible, over the counter smoke ending products such as nicotine gums and patches are not. If a doctor prescribes a weight loss program to treat a specific disease condition such as diabetes or even "obesity" the cost of the program is tax deductible, but the cost of the food is not.  If you incur legal fees to become the guardian of a mentally ill spouse they can be tax deductible, however if he or she drives you crazy and you need to divorce even at the recommendation of a mental health professional or marriage counselor, you cannot deduct the cost of the divorce as a medical expense.

For a comprehensive list of legitimate medical tax deductions check out the IRS Publication 502, "Medical and Dental Expenses."