Tax Planning

Medical Expense Tax Deduction for 2022

Medical Expense Tax Deduction for 2022

Tax Planning

What is the Medical Expense Tax Deduction?

The IRS allows individuals to deduct qualified medical expenses that exceeded 7.5% of their adjusted gross income (AGI). For example, if you have an AGI of $150,000 and qualified medical expenses of $18,750, you can claim a medical expense deduction of $7,500 (7.5% of $150,000 is $11,250 and qualified medical expenses above $11,250 is $7,500).

What Care can be Claimed Under the Medical Expense Tax Deduction?

Qualifying medical expenses include preventative care, treatment, surgeries, dental care, vision care, psychologists, psychiatrists, prescription medications, and appliances such as glasses, contacts, false teeth, and hearing aids. You can also deduct expenses paid to travel for medical care such as mileage on your car and parking fees. Medical expenses for which you are reimbursed, cosmetic procedures, non-prescription drugs, and other purchases for general health are not deductible.

You must Itemize your Deductions to Claim the Medical Expense Tax Deduction

To claim the medical expenses deduction, you must itemize your deductions. Note that the standard deduction for a couple that is married filing jointly in 2022 is $25,900. This means that the sum of your itemized deductions must be larger than $25,900 to justify itemizing. Your medical expenses and other itemized deductions are listed on Schedule A of your tax return.

In addition to tracking your medical expenses and reporting them on Schedule A, you may consider using a Health Savings Account to help cover the out-of-pocket costs.

For more information: https://www.irs.gov/taxtopics/tc502

If you have questions about how this may apply to your situation, please call us at 775-850-5620.

Editors Note: This article was originally published on January 29, 2019. It has been updated to reflect 2022 deductions. 

Important Disclosure Information: The information contained within this blog is for informational purposes only and is not intended to provide specific advice or recommendations. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Schultz Financial Group Incorporated), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Schultz Financial Group Incorporated. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Schultz Financial Group Incorporated is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Schultz Financial Group Incorporated’s current written disclosure statement discussing our advisory services and fees is available for review upon request. Please Note: Schultz Financial Group Incorporated does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Schultz Financial Group Incorporated’s web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Where you want to go in life is up to you. How to help you get there is up to us.

Contact us today to start your journey…

Contact

Schultz Financial Group Inc.
10765 Double R Blvd. Suite 200
Reno, NV 89521
Phone: (775) 850-5620
Fax: (775) 850-5639
Email: [email protected]

Where you want to go in life is up to you. How to help you get there is up to us.

Contact us today to start your journey…

Contact

Schultz Financial Group Inc.
10765 Double R Blvd. Suite 200
Reno, NV 89521
Phone: (775) 850-5620
Fax: (775) 850-5639
Email: [email protected]

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