• July 6, 2016
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Most taxpayers are aware that they are eligible for a tax exemption if they spend a part of their income in medical and dental treatments. They, however, are unsure about the exact rules of tax deductions and how they apply in their case. As a result, we receive several enquiries from taxpayers across the country, seeking clarification on different doubts. To help clear the smokescreen, here is a list of some of the most common questions we come across, along with the answers. Take a look.

1. Can I claim a tax deductions for medical and dental expenses?

Yes, you can claim a tax deductions for your medical and dental expenses; however, if you do so, you need to itemize the deductions on your federal tax return, instead of applying for a standard deduction.

2. I have heard there’s an income criterion. What is it?

According to the IRS’ guidelines, you can include all the qualified medical costs that you incurred during a tax year, if the amount you paid as medical costs exceeds 10 percent of your adjusted gross income. Remember, if you or your spouse’ age is 65 years or more, the medical costs must exceed only 7.5 percent of your adjusted gross income, and not the regular 10 percent. The, benefit, however, applies until 31st December, 2016.

3. What exact benefits am I entitled to receive?

You can claim a tax deductions for the medical and dental expenses that you incurred on a treatment that you, your spouse or your dependents underwent. You can include the following expenses in your claim:

  • The amount spent in the diagnosis, treatment and prevention of a disease
  • The amount paid for prescription drugs and insulin
  • The insurance premiums of the medical care policies in place
  • Certain long-term care insurance costs

In addition, it is important note that any reimbursements that you received through insurance or any other source do not qualify for any deduction. To learn more, you may visit the official website of IRS and check “Publication 502 – Medical and Dental Expenses”.

4. Can I deduct my travel costs?

Yes, you can deduct the travel expense that you incurred during medical care. The travel costs for which you can claim a deduction includes public transportation, amount paid for ambulance services, and tolls or parking fees. If you used your own car for travelling during the treatment, you can claim a deduction based on the actual cost incurred, or on the basis of the applicable standard mileage rate for medical travel. For example, last year, the rate was 23 cents per mile.

5. Can I claim a deduction if I paid for my medical expenses through my Health Savings Account or Flexible Spending Arrangements?

Amounts paid through Health Savings Account or Flexible Spending Arrangements are usually tax free, and therefore, if you paid your medical bills through any of these plans, you cannot claim a tax deductions.

6. Can the IRS help me calculate how much medical expenses I can deduct?

Yes, the IRS provides a tool (Interactive Tax Assistant) to taxpayers, to calculate the deductions on medical bills. The tool can answer a wide range of questions on various tax topics, one of which is the health care law.

Final Words

These were some of the concerns that most taxpayers have, and we hope you found answer to some of yours, too. If, however, you still have any question or need help with filing your tax return, contact our tax expert at The Law Offices of Nick Nemeth, and we will be happy to help. To reach us, simply call (972) 426-2553 or email us at info@myIRSteam.com.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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