Filing taxes can be a grueling experience. It’s important to gather all your medical receipts for reimbursement. If you are unsure as to what cost are tax deductible contact your local Internal Revenue Service office or an accountant or tax consultant to find out which costs are tax deductible. Look in your telephone directory or go to http://www.irs.ustreas.gov.
There are also website that let you file your taxes for free (federal). Usually there is a smal fee associated with fiing your state taxes. Read the website of your choice carefuly before submitting your tax information.
The federal government places a minimum on the medical expenses you must accrue in a given year to deduct them on your taxes. They must exceed 7.5% of your adjusted gross income.
The IRS has a fairly broad interpretation of what qualifies as an eligible medical expense. More than just co-pays and prescriptions, it can include just about any expenses incurred as a direct result of medical or dental care. A full explanation is available in IRS Publication 502, “Medical and Dental Expenses.”
For a breast cancer patient, examples include:
- Transportation to and from treatment, and lodging if an overnight stay was required
- Wigs purchased after hair loss due to illness or treatment
- Breast reconstruction surgery after a mastectomy
- Payments made to a smoking cessation program, but not for over-the-counter treatments, such as nicotine gum or patches
- Home improvements to increase accessibility, such as lowering kitchen cabinets or installing closet systems that reduce the need for high reaching
- Physical therapy or drug therapy — such as Tamoxifen or Herceptin, prescribed during or after your breast cancer treatment — or whatever your insurance doesn’t cover
Medical costs that are not covered by insurance policies sometimes can be deducted from annual income before taxes. Examples of tax deductible expenses might include mileage for trips to and from medical appointments, out-of-pocket costs for treatment, prescription drugs or equipment, and the cost of meals during lengthy medical visits. The local Internal Revenue Service office, tax consultants, or certified public accountants can determine medical costs that are tax deductible.
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