Medical Expenses and Taxes: What You Need to Know
(snip)
Tax-law changes several years ago made it more attractive for millions of taxpayers to choose the standard deduction, instead of itemizing deductions such as medical bills and charitable gifts on Form 1040’s Schedule A. A big obstacle to deducting medical bills is what’s known as the 7.5% rule: If you itemize, you can deduct medical and dental expenses on Schedule A only to the extent that the total exceeds 7.5% of adjusted gross income.
(snip)
While most people typically don’t meet the 7.5% test, some may benefit from a recent IRS announcement that certain Covid-related expenses qualify as medical-expense deductions. The IRS said that amounts you paid to buy personal protective equipment for the primary purpose of preventing the spread of Covid-19 qualify as deductible medical expenses, says Jackie Perlman, principal tax research analyst at the Tax Institute at H&R Block. This includes such items as face masks, hand sanitizer and disinfecting wipes, Ms. Perlman says. But, again, you can’t deduct any of these costs unless your total medical expenses exceed 7.5% of adjusted gross income.
Among other items that may be overlooked are the unreimbursed costs for crutches, orthopedic shoes, and alcohol and drug abuse treatment programs, Mr. Luscombe says. You generally can include costs of a smoking-cessation program, but you can’t deduct such nonprescription items as nicotine gum or patches, he says. What about weight-loss programs? Yes, under certain circumstances. You can include the amounts you pay to lose weight “if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension or heart disease), That includes membership fees in “a weight reduction group as well as fees for attendance at periodic meetings.” Taxpayers can’t include membership fees in a gym, health club or spa, but they can include “separate fees charged there for weight-loss activities.” Be sure to get the doctor’s prescription in writing.
Other deductible items include costs of a legal abortion, acupuncture, birth-control pills prescribed by a doctor, and the cost of a hearing aid and batteries, repairs and maintenance needed to operate it. See IRS Publication 502 for more details. (IRS Publication 969 has information on health savings accounts and other tax-favored health plans.)
(snip)
Many older adults have moved into a continuing-care retirement community, or a similar place, where you sign a contract covering both residential and medical services, such as independent living, assisted living and skilled nursing (long-term care). Depending on the details of the contract, a significant part of what you pay may be deductible. The IRS says the agreement must require you to pay “a specific fee as a condition for the home’s promise to provide lifetime care that includes medical care.” Our community, for instance, gives residents a statement from an actuarial firm that includes details on the continuing-care retirement community and deductible amounts.
More..
https://www.wsj.com/articles/medical-expenses-and-taxes-what-you-need-to-know-11620057600 (subscription)
More about continuing care community
https://www.democraticunderground.com/11836808
= new reply since forum marked as read
