![]() Tax-Free Withdrawals From a Health Savings AccountĪnother way to get a tax break for medical expenses, even if you don’t itemize, is to use tax-free money from a health savings account. ![]() Married taxpayers who are 65 and older can each claim an extra $1,300 standard deduction (or $1,650 if single). In 2020, the standard deduction is $12,400 for single taxpayers and $24,800 for married filing jointly. That’s because you can only deduct your medical expenses if you itemize your deductions - and most people don’t itemize now that the standard deduction is so much higher than it had been in the past. A Strategy To Benefit From the Medical Expense Tax Breakĭespite this long list of tax-deductible expenses, many people don’t take the medical expense deduction. For details and a full list of tax-deductible medical expenses, see IRS Publication 502, Medical and Dental Expenses. You can only deduct the cost of certain services that are required by a chronically ill individual and provided under a plan of care prescribed by a licensed healthcare provider. Qualified long-term care services may also be deductible, but the requirements are complicated. If you have a long-term care insurance policy, you can also deduct a portion of the premiums you pay for that coverage based on your age - up to $1,630 in 2020 for ages 51 to 60, up to $4,350 for ages 61 to 70, and up to $5,430 for 71 and older (you can deduct a smaller portion of the premiums at younger ages). You may also be able to deduct some costs for home modifications made because of a medical condition or disability, such as widening doors or installing a wheelchair ramp.ĭid You Know: What Can I Write Off on My Taxes? “Weight loss programs may deductible if recommended by a doctor, but the food is not deductible,” she said. Some common expenses for retirees that are tax-deductible include the cost of glasses and vision care, hearing aids, most dental care, programs to stop smoking, mileage to and from medical appointments (17 cents per mile in 2020), chiropractic care and acupuncture, said Mary Kay Foss, a CPA in Walnut Creek, California, who works with many retirees. “I don’t think people realize that Medicare doesn’t cover most dental or vision care,” said William Stuart, director of strategy and compliance for Benefit Strategies, a healthcare benefits consulting firm.īe Aware: Economy Explained: Tax Fraud and Tax Evasion Penalties ![]() ![]() Hearing aids and some other common expenses aren’t covered by Medicare, either. And even with Medicare Part D, you may still have to pay some large co-payments for your medications, especially if you take expensive brand-name or specialty drugs. If you have traditional Medicare and don’t have Part D prescription drug coverage, you have to pay most drug costs yourself. For example, if you don’t have a Medicare supplement or Medicare Advantage plan, you may have to pay deductibles and co-payments for hospital stays, doctor’s visits and other healthcare costs. ![]() Even after you’re on Medicare, you may still have some big medical bills. Read More: Doing Your Own Taxes? Make Sure You Follow These 15 TipsĪ long list of medical expenses are tax-deductible, including the deductibles and co-payments you pay for care that is covered by insurance and your out-of-pocket costs for many expenses that aren’t covered by insurance. ![]()
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