Tax Tips: What medical expenses can I deduct when filing my taxes?

(AP Photo/Carolyn Kaster, File)

Q. I pay pre-tax premiums for health care to in my paycheck and I have a health savings account (HSA). Are there any medical expenses I can deduct?
— Trying to save

A. Health care costs can be a big line item in your budget. If you’re able to deduct some of the costs, it may take the sting out of it.

However, you can only deduct the amount of expenses that exceeds 10% of your adjusted gross income (AGI), said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield, New Jersey.

If you’re 65 or older, you have a lower threshold, Gobo said. The expenses only need to exceed 7.5% of your AGI for 2016. The senior exemption will go away in 2017.

Not every expense is deductible, but lots are.

Equipment, such as crutches, wheelchairs, artificial limbs and hearing aids are deductible, Gobo said. So are dental services, doctor’s appointments, nursing services and hospital services — as long as you haven’t been reimbursed for the cost by your health insurance company.

If you renovate your home because of a medical condition or disease you may be able to deduct the costs, Gobo said.

The key is that deductible expenses must be unreimbursed expenses.

“That means if you pay for an expense but get reimbursed by your insurance company or anyone else, you can’t claim that expense as if you paid for it,” Gobo said.

He said you can claim expenses the year you paid them or when they were charged if you used a credit card. Also, if you pay medical expenses from your health savings account, you may not include these payments when considering your deductions.

“Make sure to keep any receipts from doctor visits and pharmacies, bank statements, and credit card statements showing where you paid for services, supplies, and any insurance premiums paid,” Gobo said. “Keeping track of your expenses will save time and headaches when filing your taxes.”

If you’re not sure, talk to your tax adviser or financial professional.

Wondering what else you can do to save some money on your taxes? Here’s 7 more ways to cut your tax bill.

More from Credit.com

This article originally appeared on Credit.com.

NBC4i.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others and keep the conversation on topic and civil. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s