Sal Talks Tax
Deductions
MCS
It’s tax time and April 15th is a mere two weeks away. In my earlier
career as an accountant, I was often asked questions about costly medical
deductions. Many people have high medical costs that may be deducible,
including those who were in accidents, had surgery, or suffer from conditions
like fibromyalgia, chronic fatigue, multiple chemical
sensitivity, and many other disabilities. Here are the answers to
the most common inquiries:
How much of my medical expenses are deductible?
Total
medical expenses are deductible only to the extent that they exceed 7.5% of
your adjusted gross income. In addition, the total of your itemized
deductions must exceed your stand deduction amount to be useful in reducing
your taxes.
Can I Deduct My Supplements?
Generally,
supplements are not deductible. For those who are able to itemize
deductions, vitamins and supplements may be deducted if they are prescribed by
a medical doctor for a specific medical condition, as opposed to being for
general health.
Is My Chiropractor Deductible?
Yes,
chiropractic care is a deductible medical expense. However, the IRS
generally does not recognize alternative medical care as deductible.
Can I Deduct Capital Expenditures for
Making My Home Accessible?
Yes,
capital expenditures to make a home accessible are deductible if they are
medically required. The expense is only deductible to the extent beyond
that which it increases the property value. For example, if you install
wheel chair ramps, they likely will not increase the value of the property
since they are not needed by most. The cost would be deductible.
However if you install air conditioning with a whole house air filter for a respiratory
condition, only the difference between the cost and the increase in property
value is deductible.
What are the most often missed medical
deductions?
The
IRS allows ten cents per mile driven to obtain medical care and pick up
prescriptions. Keeping track of your medical and prescription travel can
help increase your medical deduction. The IRS requires a written record
of miles. The easiest way to achieve this is to write the miles driven
down on the dated receipt for the services or prescription each time you go and
add them up at the end of the year.
The costs paid for medical care of nondependent children claimed on another
person’s return is deductible.
The cost for acquiring and upkeep of a seeing eye dog
is deductible.
For more information, visit www.irs.ustreas.gov.
Copyrighted © 2008 MCS