Medical bills for a chronic disease like diabetes can really add up. What can you do if your bills are more than your insurance will cover? If your bills are more than 7.5% of your adjusted gross income, you can deduct many of your medical expenses off your taxes. Both medical and dental deductions are allowed.
Here are some items you can deduct:
- Artificial limbs
- Acupuncture
- Dental treatments
- Diagnostic devices such as glucometers
- Eyeglasses and eye surgery
- Health Maintenance Organization (HMO) fees
- Home care
- Hospital services
- Insurance premiums
- Lab fees such as blood tests
- Doctors, surgeons, specialists or other medical practitioners
- Prescription medicines including insulin
- Operations
- Optometrists
- Oxygen
- Prosthesis
- Psychiatric care
- Stop Smoking programs
- Surgery
- Therapies
- Transplants
- Transportation to and from medical care including travel by personal car. You can include the cost of gas and oil but you cannot include depreciation, insurance, general repair, or maintenance expenses. If you do not want to use your actual expenses, for 2006 you can use a standard rate of 18 cents a mile.
- Parking fees, tolls
- Weight loss programs
- Wheel chairs
- X-rays
Make sure to save all of your receipts. For a complete list of allowed medical deductions, see the Internal Revenue Service website.
Sources:
"Publication 502." Internal Revenue Service. United States Department of the Treasury. 18 Sep 2007.
"Publication 502 - Introductory Material." Internal Revenue Service. United States Department of the Treasury. 18 Sep 2007.
