July, 2007

Had a root canal? Broke a bone? Well, what you spend on health care might be deductible.

The Internal Revenue Service allows a deduction of medical costs if such costs are more than 7.5 percent of your adjusted gross income–that’s quite a doctor bill for some folks. Expand your thinking, though, and you just might reach the 7.5 percent threshold.

Consider dental expenses as well. And, consider all expenses for all of your family members: your spouse and your dependents.

The following medical expenses are often overlooked or misunderstood, but are allowed:
• Insurance premiums that you make from post-tax income. It even includes insurance for long-term care, within limits (age-based).
• An extra pair of eyeglasses or contact lenses.
• False teeth.
• Hearing aids and artificial limbs.
• Expenses for treatment of alcohol or drug abuse.
• Laser eye surgery.
• Medically necessary expenses prescribed by a doctor.
• Travel expenses to and from medical treatments, using the standard mileage allowance (20 cents per mile for 2007).
• Expenses for stop-smoking programs.
• Some weight loss programs, if medically recommended.

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