Deducting Your Medical Finance Expenses

Deducting medical finance expenses is something that a lot of people never do. They think about their mortgage interest, charitable contribution, and the other popular deductions, but often forget that there is a deduction for qualified medical expenses. Although it is not the easiest deduction to get, many people could qualify for it each year. Here are the basics of the medical expense deduction and how it works.

Allowable Deductions

While it would be nice to be able to deduct all of your medical expenses, it is not allowed by current tax law. In order to be able to deduct any medical expenses, the expenses have to be more than 7.5% of your adjusted gross income. Therefore, after you take all of your deductions for your taxes, the total of all the medical bills has to be more than 7.5% of your income. If the amount of the bills is greater, you can deduct whatever is over the 7.5% threshold.

Expenses

To reach this limit, you can add all of your medical and dental expenses. You can add all of your family's expenses together to get this total. Any dependents that you might have will count. Even if you pay some of your parent's medical bills, it might qualify. As long as the total is over 7.5%, you can deduct.

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