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What Are The Available Medical Deduction Plans?

  Sanjiv Gupta CPA  Published 
What Are The Available Medical Deduction Plans?

A medical deduction plan helps to reduce tax on medical expenses.  This type of plan is beneficial for one who has to spend excessively on medical issues.   Medical deduction plans allow a person to qualify for tax exemptions. However, to file a tax return on medical expenses it is essential for an individual to present all supporting medical documents.

Tax Deductible Expenses

Tax deduction for medical expenses is available for a large number of issues. One can get a deduction on diagnosis cost, cost of treatments and even cost of medical supplies.

 Medical deduction plans are available for the following issues generally.

  •  Fees payable to doctors and dentists
  • Expenses that one has to pay for medicines that are prescribed by a doctor.
  • For medical aids and equipment like pacemakers, wheelchairs, hearing aids and dental equipment.
  • Charges of weight loss program which is prescribed by a doctor.  However, the charges of low-calorie foods can not be tax-deductable.
  • Travel expenses due to medical treatment.
  •  The cost of any type of surgery including eye surgery and cosmetic surgery.

However, one point to remember is that medical expenses that improve general health such as vitamin deficiency are not tax-deductible.

Who can have the benefits of a tax deduction?

  • A taxpayer can deduct medical expenses for his/her own medical treatment, cost of equipment and surgery.
  • A taxpayer can receive tax deduction for the treatment of a spouse.
  • A taxpayer can claim a tax deduction for the medical issues of a person who is dependant on him/her.


Is there any exposure for non-dependant?

IRS generally offers no tax deduction offers for the non-dependants. However, in some special cases tax deduction rules can be changed.

  • IRS does not offer any coverage for a non-dependant even if it is one’s, own child. But if the child is a non-dependable according to the law of divorce or separation.
  •  A taxpayer can not claim a person as a dependent if he/she gets $3,700 and more.


How to apply for tax deduction?


A taxpayer can claim a deduction of medical and dental expenses if the services were made during the tax year.  An applicant can apply for a tax deduction when the payment is complete. This is applicable for each type of payment, such as online payment, payment by phone or credit card.

Deduction plans for long term medical expenses

IRS offers a tax deduction for long term medical expenses.  If a person suffers a long time from a severe medical issue, he/she can claim a tax deduction for diagnostic, therapeutic, treatment and personal care costs. In order to avail of a long-term medical deduction, one must meet all criteria as specified by the IRS.

  • Medical issues must be of chronic type:  a person can be diagnosed as a chronic sufferer if he /she has been suffering for one year or more and is unable to perform daily activities without substantial cooperation.  if the mentioned person requires extensive care to maintain personal care and
  • Diagnosis, treatment and all other necessary medical services should be executed under the supervision of a recognized doctor or medical practitioner.

 What should be included in long term medical deduction plans?

A tax deduction can also be granted for the following issues.

  •  Expenses of meals that a person takes at a hospital or nursing home. However, such meals must be part of medical care.
  •  Charges paid for the medical conferences including transportation and admission costs. The time of the conference must involve medical sessions. A person is not capable to claim a tax deduction for food and lodging charges that he/she has to pay during the medical conference.
  •  IRS offers a tax deduction for medicines, injections and other medical supplies that are prescribed by a certified medical practitioner. For diabetes patients, the charge of insulin is deductable without prescription.
  •  A chronic patient some times requires additional nursing services to perform regular activities. In such a case, the cost to appoint a nurse or an attendant or a caregiver is deductable.
  •  Cost of operation, eye surgery can be tax-deductible. On the other hand, IRS does deduct amounts that are spent due to unnecessary surgical treatments such as some kind of cosmetic surgery, artificial implantation, etc.

IRS offers a tax deduction for certain issues. These are mentioned in the following points.

  • Stop smoking program
  • Psychoanalysis
  • Sterilization
  • Pregnancy test kits
  • Special education
  • Weight loss program

Issues that do not tax deductable

  • Childcare services for a healthy baby
  • Cosmetic Surgery except for a medical requirement.
  • The weight loss program is only for general health and appearance improvement.
  • Household service
  • Electrolysis
  • Expenses for funeral
  • Hair Transplant
  • Illegal surgical treatments
  • Cost of Insurance Premiums
  • Imported drugs and medicines
  • Nutritional Supplements
  • Fees for Veterinary treatment
  • Diaper Service