Tax Tip of the Week
January 28, 2008

Are you examining your receipts, hoping to exceed the 7.5% of adjusted gross income threshold for deducting medical and dental costs? A quick review of deductible expenses and a recent IRS ruling may help.

Here are five types of medical expenses that can increase your deduction:

1. Expenses paid for qualifying individuals. You may be able to deduct expenses you pay for someone you don't claim as a dependent.

   For instance, say you provided over half of a parent's support during 2007. Your parent earned more than $3,400 of gross income, but meets the definition of dependent in all other ways. You can include what you paid for his or her medical expenses on your tax return.

2. Diagnostic procedures and devices. In a ruling issued during 2007, the IRS concluded that some unreimbursed medical costs are deductible, even if you incur them when you're not sick. Examples include annual physicals, full body scans, and pregnancy test kits.
3. Certain nonprescription equipment and supplies. Medicine you buy without a doctor's prescription is usually nondeductible. However, items such as crutches, elastic hosiery, or blood sugar tests qualify as deductible expenses.
4. Medical conferences. If you, your spouse, or a dependent attend a conference relating to your chronic disease, the registration fee and travel expenses may be deductible.
5. Nontraditional treatments. Fees paid to acupuncturists, chiropractors, and therapists can typically be deducted if related to a medical condition.

For more details on deductible items, please call. We'll be happy to help you achieve the best tax treatment.

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