Tracy’s Tax Tips: Medical Deductions

Are the medical bills piling up? You might be able to deduct some of those expenses.

FOX Business Network’s Tracy Byrnes explains in “Tracy’s Tax Tips”:

If you or your spouse or dependents had significant medical or dental costs in 2012, you may be able to deduct those expenses when you file your tax return.

I’m Tracy Byrnes with the FOX Business Network here with Tracy’s Tax Tips.

Now, you can deduct qualifying medical and dental expenses if you itemize on Form 1040, Schedule A.

Your deduction is limited though. You only can deduct the total medical care expenses that exceed 7.5% of your adjusted gross income for the year.

So be sure to include all medical and dental expenses you paid during the year, regardless of when the services were provided.

So include expenses paid for the diagnosis, treatment or prevention of any disease. Deduct prescriptions, medication and insulin. You can also include premiums for medical, dental and some long-term care insurance in your expenses. And breast feeding mothers can also include lactation supplies.

You can also deduct transportation costs to and from your medical care.

And note that you can’t deduct any expenses reimbursed by your insurer.