Car costs can be calculated at 17¢ a mile for miles driven in 2020, plus tolls and parking. This includes taxi fares, public transportation, or using your own car.
The cost of getting to and from medical treatments counts as a medical expense. Long-term care insurance premiums are also included as medical expenses, subject to limits based on age.
Even if your employer provides health coverage, you can deduct the portion of the premiums that you pay. This item can total thousands of dollars a year. In addition to hospital and doctor expenses, here are some items to take into account when determining your allowable costs: Controllable expenses include refilling prescription drugs, buying eyeglasses and contact lenses, going to the dentist and getting elective surgery. If your total itemized deductions for 2020 will exceed your standard deduction, moving or “bunching” nonurgent medical procedures and other controllable expenses into 2020 may allow you to exceed the 7.5% floor and benefit from the medical expense deduction. You also must itemize deductions on your return in order to claim a deduction. This threshold amount is scheduled to increase to 10% of AGI for 2021. However, the rules make it hard for many people to qualify.īut with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.įor 2020, the medical expense deduction can only be claimed to the extent your unreimbursed costs exceed 7.5% of your adjusted gross income (AGI). You may be able to deduct some of your medical expenses, including prescription drugs, on your federal tax return.
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