American taxpayers are allowed to deduct a certain amount of medical expenses from their taxes. But, these medical expenses are one of those tax deductions that have always been a bit complicated to calculate. In a new post, the National Tax Reports reveals which medical expense tax deductions taxpayers can take advantage of in 2018, how they work, how they are deducted from taxes, and which expenses can be deducted by hourly workers and self-employed.
The Medical tax deduction is quite different from other tax deductions. There is a ceiling where taxpayers can only deduct qualified medical expenses if they total more than 7.5% of their adjusted gross income for the years 2017 and 2018. From 2019, which will be reflected in the 2020 tax return, this amount goes up to 10% of adjusted gross income.
To estimate the Medical Tax Deduction, the first step is to calculate one’s adjusted gross income. This is one’s taxable income minus deductions, traditional IRA contributions, and any student loan interest one might have. Aside from the adjusted gross income, the IRS is also specific about the qualifying medical expenses. Some of the most common qualifying medical expenses include; preventive care, surgery treatments, dental care, vision care, prescriptions, visits to psychiatrists and psychologists, and travel expenses such as car mileage and parking fees. Medical premiums are also tax deductible but must be paid from the taxpayer’s own pocket.
The easiest way to claim the Medical Tax Deduction is by using TurboTax. Taxpayers will need to attach Schedule A and itemize their deductions. When itemizing expenses, filers will need to write down your adjusted gross income, enter 7.5% of this figure, and the difference between their expenses and the 7.5% they just wrote down. They are also expected to add any standard deductions that they are entitled to.
TurboTax removes much of the complexity involved with figuring out medical expenses and which deductions filers are entitled to. It’s also much more cost-effective than hiring an accountant and a tax-preparer!
File your taxes today with TurboTax in minutes and have peace of mind this tax season!
For more information about the Medical Expense Tax Deduction, please read the full post here, https://nationaltaxreports.com/what-are-medical-expense-tax-deductions/