Tax Time! Have You Maximized Your Medical Expenses?

By Michelle Katz

You may not be in as much medical debt as you think! If your medical expenses exceed 7.5 percent of your adjusted gross income, you can start deducting! The IRS defines these expenses as “the costs of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments affecting any part or function of the body.” They may include costs, of equipment, supplies, and diagnostic devices needed for these purposes as well as dental expenses. So save those receipts and think back to what you think is a medical expense and double check with the IRS’s publication 502. You might be surprised at what made the list!

Traditionally, health expenses include doctors' visits, laboratory tests, prescription drugs, and even insurance premiums. But did you know that some alternative procedures such as acupuncture, Navajo healing ''sings,'' electric shock, whirlpool baths, hydrotherapy and heat treatments are also on the list? No, marijuana is not a deductible, even when prescribed by a doctor in a state permitting the prescription, but keep checking, it might be included in next year’s list!

Some less obvious deductions may include air conditioners for relief of allergies or breathing problems, contact lenses, Braille books, adapters for closed-caption service for the deaf, hearing aids, eyeglasses, orthopedic shoes, crutches, wheelchairs, wigs for those who have lost hair through disease, and legal fees for guardianship of a mentally ill spouse and let’s not forget those clarinet lessons for “little Jonny” because a dentist recommended them for treatment of his tooth defect.

If you participated in childbirth classes for expectant mothers, you may be able to deduct those too, but do not deduct your maternity clothes. You just might want to donate those to the Salvation Army or Goodwill if they are in at least “good” condition for the tax write-off. Don’t forget about those remedial reading expenses for your child if they are suffering from dyslexia and what about the cost of buying, training and maintaining a guide dog or “other animal” for that blind person.

Let's not forget any “home improvement” expenses you incurred while constructing an exit ramp, widening doorways, fire alarms, handrails, lead-based paint removal, special hardware on doors, lowering or modifying kitchen cabinets etc for the purpose of medical care for you or your dependent(s). And do you have dependents, like your parents, that rely on you to cover their medical expenses, or even part of their medical expenses?

For 2006, you can also deduct 18 cents per mile for travel expenses to and from your medical treatments. Next year it is expected to go up to 20 cents per mile and let’s not forget lodging and meals at a hospital or “similar institution.” As long as the principal reason for being there is to receive medical care, you are "in the clear," however, lodging cannot exceed $50 per person. For example, if a parent is traveling with a sick child, you can deduct up to $100 per night and that does not include meals.

In general, most medically necessary costs prescribed by a physician are deductible and so are some other things you may not even think of…so be sure you the IRS Publication 502, "Medical and Dental Expenses'' before filing your taxes this year. You don’t want to miss out on any of those deductions, especially with the rising costs of health care!

Read "Health care for Less" on other deductions and ways you can save on your health care.
http://www.healthcareforless.us
Article Source: http://EzineArticles.com/?expert=Michelle_Katz