Med Expenses Subject to 10% AGI Limits

Question 1

Beginning in 2013, what limitation is placed on the deductibility of unreimbursed healthcare expenses?

Answer 1

Unreimbursed healthcare expenses must exceed 10% of AGI (prior to 2013, it was 7.5% of AGI)

Question 2

Are Medicare Part B and D premiums deductible?

Answer 2

Yes, to the extent they and other healthcare expenses exceed 10% of AGI.

Question 3

To what extent are LTCi premiums deductible?

Answer 3

They deductible according to the following age-based schedule:

Age on Dec. 31, 2013 Amt You Can Treat as Med Expense
40 or under $360
41 to 50 $680
51 to 60 $1,360
61 to 70 $3,640
Over 70 $4,550

Question 4

What are some of the most commonly expenses which are also allowable deductions?

Answer 4

Here’s an alphabetical list of commonly encountered costs that count as medical expenses for itemized medical expense deduction purposes.

Acupuncture

Ambulance

Artificial limb

Artificial teeth

Bandages

Braille books and magazines

Car—cost of special equipment so disabled person can drive

Chiropractor

Christian Science practitioner

Contact lenses plus wetting and cleaning solutions

Crutches

Dental care

Diagnostic devices

Drugs—prescription only except for insulin

Eyeglasses

Eye surgery

Guide dog

Hearing aid

Home improvements for medical purposes to extent they don’t add to the value of your home

Hospitalization

Insulin

Insurance premiums for health coverage including age-based premiums for qualified long-term care insurance

Laboratory fees

Lifetime care fees—percentage of fees paid under lifetime contract with a continuing care retirement community (CCRC)

Long-term care services

Meals—while staying in hospital or similar facility

Medicare insurance premiums

Nursing home

Nursing services

Operation (i.e., surgery)

Optometrist

Osteopath

Oxygen

Psychiatric care

Psychoanalysis

Stop smoking program

Telephone-—cost of special equipment for hearing-impaired

Television-—cost of special equipment to display subtitles for hearing-impaired

Therapy

Transplant

Transportation to receive medical care (24 cents per mile for 2013)

Weight loss program—if part of treatment for specific disease or condition, such as obesity

Wheelchair

Wig—if hair is lost due to medical condition or treatment

X-rays