Advertisement
taxes

Medical expenses are tax deductible

Taxes » Tax Deductions » Medical Expenses Are Tax Deductible
Tax breaks: Bait and switch
Medical expenses are tax deductible

Even with health insurance, many people find they personally pay a lot for medical treatments. Thank goodness those out-of-pocket medical costs are tax deductible.

Yes, they are, to a point.

To claim medical expenses, you must itemize instead of taking the standard deduction amount.

And you can't claim every penny you spend on medical treatments. On 2012 tax returns, the medical expenses deduction is available only for amounts that are greater than 7.5 percent of your adjusted gross income, or AGI. A taxpayer with a $40,000 AGI will need more than $3,000 in medical bills, meaning that total medical costs of $3,100 only will produce a $100 itemized medical deduction.

Under provisions of the Patient Protection and Affordable Care Act, commonly referred to as health care reform, the AGI medical deduction percentage threshold increases to 10 percent in 2013.

The good news here is your medical deductions are not limited to insurance copays and prescription costs. There are many medical costs that can be counted, so if you're close to your itemized medical threshold, check out all the possibilities that could help you claim this deduction.


 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed, 0 point 4.32%  0.06 4.26%
15 year fixed, 0 point 3.36%  0.09 3.27%
5/1 ARM 3.37%  0.10 3.27%
 
View Rates in your area Search
Product Rate Change Last week
30K FICO-based HELOC 4.74%  0.01 4.75%
50K FICO-based HELOC 4.51%  0.01 4.50%
100K FICO-based HELOC 4.24% --0.00 4.24%
 
View Rates in your area Search
Product Rate Change Last week
60 month used car loan 2.86%  0.20 3.06%
48 month used car loan 2.79%  0.40 3.19%
60 month new car loan 2.94%  0.10 2.84%
 
View Rates in your area Search
Product Rate Change Last week
1 Year CD 0.90%  0.02 0.88%
2 Year CD 1.02%  0.01 1.03%
5 Year CD 1.59%  0.01 1.60%
 
View Rates in your area Search
Product Rate Change Last week
Balance Transfer Cards 15.71%  0.01 15.70%
Cash Back Cards 16.36% --0.00 16.36%
Low Interest Cards 10.91% --0.00 10.91%
 
Search
DAILY TAX TIP NEWSLETTER

Get expert advice during tax season on tax preparation and tips for cutting your tax bill.

advertisement

Connect with us