So I am one of those lucky parents whose child needs braces. After shopping around for a while (my insurance doesn’t have ortho coverage) we picked a doctor. Our bill was around $5500.00. In addition during a year we had some prescription medication totaling $300 and dentist visits of $600. Total medical expenses of $6400. A lot of money, right? You would think we would be able to deduct it. For a lot people it’s a wrong assumption
Medical expenses are deductible only when you itemize, meaning you owe property and paying mortgage and real estate taxes, have some sort of donations, and may be have some work dues (not your country club dues). If you itemize then you can calculate how much of your medical expenses is deductible. It’s not 100%. In short you can claim only difference between what you spent on medical expenses and 10% of your AGI. For example, if your family AGI is $55,000.00 your 10% is $5500.00. In my scenario medical expenses were $6400-$5500=$900. Here is a catch: your combine itemized deductions on Schedule A should be more than your standard deduction
Single and Married filling separately $6300,
Married Filling Jointly $12,600,
Head of Household $9250
if you elect to still take itemize deduction that is less than your standard deduction, you will be paying more taxes as your taxable income will be more.
Yes, you might have substantial medical expenses, but it’s not necessarily you can deduct them and if you do not always its better than electing to take a standard deduction.
See how to do it on your tax return HERE.