Tax Planning

Medical Expense Tax Deduction for 2023

Medical Expense Tax Deduction for 2023

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 2023 is $27,700. This means that the sum of your itemized deductions must be larger than $27,700 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 2023 deductions. 

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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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