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Tax Relief: Deductible & Nondeductible Medical Expenses  

by
Frank Jenkins Jr
on
12/27/2016
Tax Relief: Deductible & Nondeductible Medical Expenses  

Healthcare costs in America are very high and many people find themselves increasingly burdened with the expenses involved in caring for themselves and others. However, you may be entitled to tax relief as there are surprising deductions for medical expenses but also plenty of items that would seem deductible yet are not.

Here are some medical expense items you can deduct and their nondeductible counterparts.

Whose Expenses You Are Paying?

Medical expenses for yourself, your spouse, and your dependents are always deductible. For blended and divorced families, this means that this person must have been your spouse or dependent at the time they received treatment or when you paid the bill.

You can also include medical expenses for people who would've been eligible to be your dependent except that they earned more than the qualifying relative dependency income limit ($4,050 for 2016) and/or they married and file a joint tax return for the year.

However, you cannot include medical expenses for people who wouldn't have been eligible to be claimed as your dependent, for example, contributing to crowdfunding campaign for help with a friend’s medical bills.)

Medicine & Drugs

Prescription drugs and insulin are deductible, as well as devices like inhalers.

With the exception of insulin, over-the-counter medications are nondeductible. Vitamins, supplements and herbal remedies are also nondeductible even if a doctor recommended them.

Doctor Visits & Procedures

Visits to doctors, hospitals, and other healthcare providers are virtually always deductible as is surgery and other treatments meant to mitigate disease or correct injuries. 

However, you can't deduct cosmetic procedures or wellness programs like gym and spa memberships.

Food For Special Diets

Generally, for food to be a deductible medical expense, it needs to not satisfy normal nutritional needs or alleviate a disease/severe food allergy. A physician also needs to back this statement up. 

Any food only available by prescription is always deductible. If you have a condition such as celiac disease or severe food allergies that prevent you from eating conventionally available (and thus, more inexpensive) foods you must have proof from a doctor stating this and you can deduct the difference in price but not the whole purchase. For example, if a conventional loaf of bread costs $2 but gluten-free bread is $6, you can deduct the $4 difference.

While weight loss programs are deductible to an extent (such as the cost of attending meetings), commercial diet plans and food choices resulting from lifestyle changes are nondeductible even if they are recommended by your doctor.

Medical Insurance

Medical, hospital, vision, and dental premiums that you pay are deductible, including Medicare premiums and Medicare supplements. Long-term care insurance premiums are also deductible but subject to annual inflation adjusted deduction limits based upon age.

Short-term disability plans and life insurance premiums are nondeductible.

Medical Supplies & Aids

Prescription eyewear like glasses and contact lenses are deductible. Mobility aids like canes and wheelchairs are also deductible, as is the maintenance of these items.

Personal care items meant to keep up your appearance are not deductible with the exception of wigs if you have a disease that caused you to lose your hair.

Disability Accommodations

If you, your spouse, or dependents have any special needs, you can take certain expenditures as medical expense deductions. Capital improvements to your home to make it wheelchair-accessible are allowable, as is having phones and TVs adapted for TTY/TDD, audio enhancement, and closed captioning. Braille books and magazines are also deductible, 

Special education is deductible provided that it is recommended by a doctor for your child to overcome learning disabilities. If your spouse or dependents need to be placed in a care facility for the developmentally disabled at a psychiatrist's recommendation, this is also deductible.

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Frank Jenkins Jr

Frank Jenkins Jr

Frank Jenkins Jr. is the managing partner of Adams, Jenkins & Cheatham, a CPA practice based in Midlothian, VA. Frank specializes in Consulting services, tax planning, accounting, audit & assurances. "I genuinely care about our clients because I have a personal connection with them. This job requires me to multi-task and work under tight deadlines. I get great professional satisfaction from balancing firm and client commitments while building a strong team here at AJC."

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