As tax season approaches each year, it’s time to gather up your tax documents, crunch the numbers and hope for the best.
For many older Americans, it also means utilizing some key health care-related deductions.
Here is a list of 17 health care expenses that seniors or people with disabilities may be able to deduct from their taxes this year.
Medical expenses are defined by federal tax law as “the costs for diagnosis, cure, mitigation, treatment or prevention of disease, and for treatments affecting any part or function of the body.”1
But the IRS also allows for a number of tax deductions that don’t necessarily fit into any of those categories, and many of these deductions often go overlooked by tax filers.
Some of these potential deductions can include costs related to:
The 2021 tax filing season will end on Monday, April 15. You can consider talking to a tax professional if you believe any of the deductions above may apply to your filing.
Your Medicare premiums are likely tax-deductible, but if you're currently employed, don't expect them to be taken out pre-tax. Instead, these premiums will need to be deducted when you file your taxes, assuming you file an itemized return.
Most healthcare plan premiums are considered tax-deductible, including privately sold Medicare Advantage plans. This is only applicable if your tax return is itemized, however.
In order to be considered tax-deductible, your total medical expenses will need to exceed 7.5% of your Adjusted Gross Income (AGI).
Medicare Supplement (Medigap) plan premiums are often considered tax-deductible as well.
A Medicare Advantage plan may help you save money on some of your health care costs.
For example, Medicare Advantage plans are required by law to cover everything that Original Medicare (Part A and Part B) covers, but many Medicare Advantage plans offer other additional benefits that Original Medicare doesn't cover.
Some of these additional benefits can include things like prescription drug coverage, vision and dental coverage, transportation and more.
All Medicare Advantage plans also include an annual out-of-pocket spending limit, which Original Medicare doesn't cover.
Read additional medicare costs guides to learn more about Medicare costs and how they will affect you.
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