If you determine that you spent over 10 percent of your adjusted gross income (If you are over 65, the amount is 7.5 percent) on medical expense in 2014, you can potentially claim these expenses as a tax deduction. If you are using TurboTax 2014 to file your taxes, the TurboTax software will help you to figure out your medical expenses as it can potentially be a significant amount.
Deductible medical expenses include those of any dependent, as well as those of you and your spouse.
Expenses for medical costs are not deductible if you get reimbursed for them in some way; for example, your company pays you back for the cost of medical treatment. If your insurance company covers some of the cost and you cover some, the part that you pay is deductible.
If you charged your medical expenses to your credit card, you can deduct those charges, but keep in mind that the year in which you charged them is the criteria.
Using TurboTax will help you to accurately determine the type of medical expenses that qualify for a deduction, and these include doctor and dentist visits, as well as X-rays and other preventative treatments or procedures. Procedures such as teeth whitening, and most types of cosmetic surgery do not qualify for a deduction, unless an accident or disease necessitated the cosmetic surgery.
Prescription drugs and insulin are eligible for medical expenses deductions, as are the costs of visits to a psychiatrist or psychologist, alcohol or drug related treatment or rehabilitation, and the cost of sending a disabled person to a special school. Over the counter supplies and equipment are deductible, but not over the counter drugs and medication.
There are various other deductible medical expenses, and TurboTax 2014 will alert you to these, which include the cost of laser surgery, contact lenses, dentures, crutches and a wheelchair. Lactation expenses, participating in a stop smoking program, treating sexual dysfunction, removing lead paint and the cost of a nursing home are all eligible too.
If you are enrolled voluntarily in Medicare A, the amount paid out of pocket by you is eligible, as well as premiums for Medicare B. TurboTax will inform you that the premiums for an insurance plan sponsored by your employer are not deductible, although the premiums for long term care insurance are eligible.
TurboTax will help you to understand all of these possible deductions – you don’t have to be an expert when using TurboTax 2014!