However, only the portion of the cost that is above any increase to the home’s value is tax deductible. For example, if a home improvement project cost $8,000 but only added $5,000 to the home’s value, only $3,000 of the improvement costs be tax deductible.
Up to $50 per night for lodging in a hotel in order to receive necessary out-of-town medical treatment.
The cost of admission and transportation to a medical conference on a chronic condition from which you, a spouse or other dependent suffers.
Medical costs related to organ transplants for both the recipient and donor.
Both inpatient and outpatient treatment for alcohol, drug and other rehabilitation.
Service animal costs, including their food, training and vet bills.
Smoking-cessation treatments that are prescribed by a doctor.
Special diets that are prescribed by a doctor to treat a medical condition such as celiac disease, obesity or hypertension. However, only the cost that is demonstrably above the cost of regular foods may be deductible.
The cost of special education to address a diagnosed physical, mental or emotional condition.
Transportation costs to receive medical care. This can include the cost of cab, train or bus fare or 18 cents per mile if you use your own car. Some Medicare Advantage plans can also cover non-emergency transportation.
Weight-loss programs for those with a diagnosed medical condition (excluding obesity).
Wigs for cancer patients who lose their hair due to chemotherapy or radiation therapy.
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.
Are Original Medicare premiums tax deductible?
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.
Are Medicare Advantage premiums tax deductible?
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 Advantage plans may help you save money on health care costs
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.
If your Medicare card is lost, stolen or damaged, you can get a replacement card from Social Security and the Railroad Retirement Board, or by calling Medicare or logging into your My Social Security online account. Read more
This report details where Medicare beneficiaries have access to the widest range of quality 2021 Medicare Advantage Prescription Drug plans and Medicare Part D drug plans at the most affordable prices. Read more
Medicare beneficiaries who are also eligible for Medicaid are considered dual eligible. If you are Medicare dual eligible, you may qualify for a Medicare D-SNP (Dual Special Needs Plan), which is a type of Medicare Advantage plan. Read more