You figure your medical expense deductions on Schedule A (Form 1040). You must first reduce your total medical expenses by all reimbursements you have received from insurance or other sources, including Medicare. Unfortunately, while almost any medical expense qualifies for the deduction, it is difficult to actually take a deduction on your tax return. To qualify for this deduction, your medical expenses must total more than 7.5% of your adjusted gross income for the tax year. For example, a person with an adjusted gross income of $40,000 must have more than $3,000 in total medical expenses in order to utilize this deduction. You can, however, include medical expenses you pay for yourself, your spouse, dependents and adopted children.
Deducted medical expenses include payments for treatment, cure, diagnosis and treatment of diseases related to any part or function of the body as well as costs incurred for alleviation or prevention of mental illness. Deductions cannot be taken for expenses incurred for purely cosmetic procedures or overall general health benefits. Following is a list of commonly overlooked medical and dental related expenses.
