Deducting medical expenses---one of my most fulfilling tax deductions come tax time. Nothing is quite as rewarding as sticking it to, er.... um... Well, I'm not sure who exactly I'm sticking it to, but it feels good nonetheless. At least you get some kind of retribution for being sick.
So, you know you have medical expenses to deduct. Now what?
How 'bout you take advice from the experts:
Pat Harker did a good post recently on what medical expenses are deductible. But, how much is a little more fuzzy. How do I figure out the amount of my medical and dental expenses that's over 7.5% of my adjusted gross income? Tippy Taxes explains.
"Your adjusted gross income is $40,000, 7.5% of which is $3,000. You paid medical expenses of $2,500. You cannot deduct any of your medical expenses because they are not more than 7.5% of your adjusted gross income."
Making it a little bit clearer ECUSkully02 explains that you can only deduct the medical expense amount that EXCEEDS 7.5%. Therefore, in the example above, it your medical expenses were $3,500 you'd be able to deduct $500.
So, break out those receipts, sharpen that pencil, and go to town!