Medical & Dental Expenses

After spending the weekend playing in the dirt at Quartsite Arizona, along with thousands of other motorhomers, I am back at my desk today, and loe and behold a tax tip from the IRS just came to my computer.  I always wonder if the IRS highlights certain areas that they know they will be looking at closely on these tax tips or ????  Anyway I thought I would list their six points aboue medical and dental and you can make up your own mind.
1. In 2010 you can only deduct the amount by which your total medical expenses for the year exceed 7.5% of your adjusted gross income.  This calculation is on Schedule A of Form 1040.
2. The medical expenses you can include are the qualified medical expenses you pay for yourself, your spouse and your dependents.  If you share custody of a child you can deduct only the amount that you pay out of pocket for the childs medical expenses.
3. To deduct a medical expense for the tax year 2010, it needed to be paid in that year.  If you have an expense and are reimbursed for some of it you cannot include the reimbursed part of the expense.
4. Medical expenses include payments for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. If you have prescription drugs the cost of them can be deducted, plus any insulin paid for which does not require a prescription.
5. You can deduct mileage or other transportation costs which are primarily for and essential to medical care that qualify as medical expenses The actual fare for a taxi, bus, train, or ambulance may be deducted. If you use your car you can deduct the actual out of pocket expense or you can deduct the standard medical rate for medical expenses.
6. Distributions from Health Savings Accounts, and withdrawals from Flexible Spending Arrangements may be tax free if you pay qualified medical expenses.

If you want more information on deductible medical expenses please visit the IRS website at www.irs.gov and look for publications 502 and 969.