In addition to reminding you to get your finances in line, we also want to point out some of the commonly-overlooked health-related items you can write off on your taxes. Andrew Schrage of Money Crashers Personal Finance shares his expert insight on the topic.
In some select instances, health insurance premiums can be written off on your taxes. However, there are many exclusions, so you need to check the IRS website for a full list. But in the meantime, here is a list of things concerning your health you can safely write off on your taxes this year, as well as a few tips to ensure the process goes as smoothly as possible.
- For the self-employed, if you pay for a high-deductible health plan (HDHP), you can contribute up to $3,100 to a health savings account (HSA) – this is also tax-deductible.
- Non-reimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI) are eligible to be deducted.
- Employer-mandated health exams can also be written off – this falls under the “miscellaneous tax deductions” list.
- Certain segments of Medicare can be deducted.
- Long-term care insurance is also eligible, but is subject to age-based limitations.
- In some cases, weight loss programs can be written off.
- If you suffer from celiac disease and a gluten-free diet is required, you may be able to write off the added expense of gluten-free foods.
- A few other health-related items that can be deducted include prescription glasses or contacts, wheelchairs, hearing aids, and other such products.
- Finally, you can also deduct transportation expenses regarding required medical appointments.
- As with any tax deduction, make sure that you have accurate documentation to support any deduction you take.
- A question I am frequently asked is whether health club fees can be deducted. Unfortunately, they can’t.
- And while you’re at it, make sure you fully understand the difference between a tax credit vs. tax deduction, and that you’re not missing any of either this year. The tax law can be confusing, but make sure to do your homework so you’re not giving too much to the IRS!
Who knew? This is an impressive list of expenses that we can reap some serious financial – and health – benefits from. I’ll be sure to consider these next year when I’m filing my taxes since I was ahead of the game this year and already sent mine in. OK, it was actually my husband – he’s the organized one of the pair. But in any case, it’s great to know that we can get some money back on investing in our health!
April 11th, 2012