Out of Pocket Expenses Series: Tax Deductible Expenses
Out-of-pocket expenses can add greatly to the amount you pay overall for health care. Not only do you need to pay a monthly amount to keep your coverage active, you still are responsible for paying for part of your medical coverage on your own.
Luckily, the tax system accounts for that and there are certain out-of-pocket expenses that are tax deductible. According to the IRS, “Out-of-pocket health care expenses include medical services, prescription drugs, and medical supplies (i.e. eyeglasses, contact lenses, etc.). Elective procedures such as plastic surgery or elective dental work are generally not allowed.
“Taxpayers and their dependents are allowed the standard amount monthly on a per person basis, without questioning the amounts they actually spend. If the amount claimed is more than the total allowed by the health care standards, the taxpayer must provide documentation to substantiate those expenses are necessary living expenses. Generally, the number of persons allowed should be the same as those allowed as exemptions on the taxpayers most recent year income tax return.” The current rate of standard deduction is $65 per person under the age of 65 and $144 over that age.