5 Ways to Save Taxes on Medical and Dental Expenses


5 Ways to Save Taxes on Medical and Dental Expenses

By Smith & Smith & Ruiz CPA's

The Internal Revenue Service allows you to claim deductions on taxes that you have paid for your medical and dental treatments and subsequently save on additional taxation. There are several clauses as to which treatments and conditions are qualified to be exeunt from taxes. It is imperative that you have a comprehensive knowledge of these conditions in order to get the most out of your tax deductions.

Which treatments qualify for deductions?

medical and dental expenses

As per the guidelines compiled by the Internal Revenue Service, not all treatments qualify for tax deductions. There are certain conditions that need to be met before you can claim deductions on your dental expenses.

  • Deductible expenses include payments made to your medical care professional and can include treatments in dentistry, surgery, and even psychiatry and chiropractors among others.
  • You are qualified for treatments that require you to be hospitalized for a period of time. You can also be qualified for deduction if residential nursing home care is required. Deductions are also made on food and lodging as charged by the hospital or nursing home in question.
  • You are qualified for deduction in your dental expenses if your treatment involves non routine procedures. Routine procedures like tooth extractions do not qualify even if they are a part of non routine treatment like some implant procedures.
  • All dental appliances that are artificially fabricated and constructed outside the mouth and are required as a permanent replacement during the course of treatment are eligible for deductions. However, temporary appliances for some nominal routine treatment do not qualify for the same.
  • You are eligible for deductions if your medical and dental treatment expenses are supported by insurance premiums for policies that support this condition. You can consult with your medical and dental care professional or your insurance agency in order to ascertain if your treatment expenses are eligible for tax deductions. You cannot apply for deductions if the payments are made from a health savings plan or a similar scheme as they are already exempt from taxation.

Alternative ways to save on treatment expenses

There are several ways to save up on your treatment expenses if they still prove to be too expensive. It is not unnatural in this day and age to take part in medical studies for universities and research labs and opt for experimental treatments for your condition. These treatments are usually cost effective and affordable. Depending on the seriousness of your condition, this option can be an excellent deal. Medical tourism is growing and you can be a part of it. It is common knowledge that treatments abroad cost a lot less and can even match up in quality. It is advisable to choose your options regarding this carefully as it will not be feasible if your travel expenses and treatment expenses match the same at home. Other possibilities include looking for discounts, paying upfront which can reduce costs by about 5 percent, and use government resources to its full advantage.

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