It seems like health care costs are always rising, but the good news is that the IRS allows you to deduct your medical expenses on your tax return. For most taxpayers, you can deduct any un-reimbursed medical expenses you have that are in excess of 10% of your adjusted gross income (AGI); for taxpayers 65 and over, you can deduct un-reimbursed medical expenses in excess of 7.5% of your AGI.
Because the IRS limits the amount of medical expenses you can deduct on your tax return, it’s important to make sure you’re accurately calculating how much you spent on medical costs last year. It’s important to count every qualified medical expense to ensure you exceed the threshold for deducting your medical costs.
One common medical expense that taxpayers overlook is transportation. Did you know that you can deduct the costs of transportation related to medical care? According to the the IRS, if the expense is “primarily for, and essential to” your medical treatment, you can deduct the costs of transportation. That includes:
- Ambulance service
- Bus or taxi fare
- Airplane tickets
- Car expenses, including mileage and tolls
Car expenses can be calculated using the standard mileage or actual expenses method, so make sure you add up both to claim the greater one.
So when you’re figuring out your 2016 medical expenses, don’t forget to add in transportation costs. It can make a difference in your tax deductions this year!