Medical Expenses You Didn’t Know You Could Deduct
If you had a lot of medical expenses in 2020, you might be able to offset some of your tax liability this season. Believe it or not, there are plenty of medical expenses you can deduct in Union City, NJ. If your taxes are particularly complicated, you’ll probably need to work with an accountant. However, this is worth it, especially if you find yourself buried in medical bills from the previous year. Medical expenses not covered by insurance may be eligible for a deduction.
Here are some of the medical expenses that can lower your tax liability:
- Newborn-related expenses: Did you have a baby in 2020? Congratulations on both the baby and the fact that you can deduct nursing supplies or the cost of prescription formula from your taxes.
- Alternative treatments: If your doctor ordered acupuncture, chiropractor visits and other alternative treatments, you may be able to take them off your tax bill.
- Weight loss programs: If your weight threatens your health—according to your doctor—you can deduct the expense from your taxes. However, if you just joined a program to feel good and for general health, you cannot.
- Lodging for medical treatment: If you had to stay in a hotel to receive medical treatment, you may deduct $50 per night. If it was to support your child while they receive treatment, you can deduct $50 for them, too.
- Reproduction-related costs: Vasectomies, birth control pills, abortions and other reproduction-related expenses are also deductible.
- Home improvements: If you had to make home improvements for a medical condition, you can deduct the cost as long as it doesn’t go over the value it added to your home. This can be for things like wheelchair ramps, handrails and more.
- Wigs for cancer patients: If you have medically-related hair loss and need a wig, you may deduct that cost from your taxes.
- Service animals: Service animal costs, including the cost of the pet itself, vet bills, training, food and more, can be deducted.
- Sex reassignment surgery: Sex reassignment surgery and hormone replacement therapy are deductible. However, check with your accountant—breast augmentation may not be.
- Organ transplants: Both donor and recipient may deduct costs for organ transplants, including hotel stays, travel and more.
- Caregiver expenses: If you had to hire a home healthcare worker to attend to your needs, you can deduct the caregiver expenses from your taxes. Meals and housecleaning are probably not deductible.
- Travel for medical reasons. If you’ve had to travel for medical reasons, including to and from doctor appointments, you may deduct those costs. However, be sure you kept accurate records before claiming these expenses.
Some of these deductions can be complex, and some can even make you more likely to undergo an IRS audit, which means it’s best to work with an experienced accountant. Your accountant can tell you which of your medical bills and expenses qualify to deduct from your taxes in Union City, NJ.
For more information about medical bills and how they relate to your taxes, reach out to Kedean’s Generation today to schedule an appointment.
Categorised in: Tax Preparation