If you have high medical bills do these get deducted from your taxes?

Question

I have quite a few medical bills this is the first time i have heard of medical deduction how is this...can someone explain this to me?..thank you

Answer 1

In addition to the payments you make that exceed 7.5% of your AGI (adjusted gross income) before you can deduction anything - - you need to be sure itemizing your deductions makes sense.
The IRS gives taxpayers a choice - standard deduction or itemized deduction. Meaning - if you can come up with a list that adds up to more than the standard then it is worth your while to itemize.
Medical expenses are part of itemized deductions.
For 2006, a single person got a $5,150 standard deduction. SO, once your itemized deductions (Medical above 7.5%, taxes, charity, etc) exceeds $5,150 - - then it is worthwhile to itemize.

Lets say you make $30k and that is your AGI and you have $5k in medical bills that you paid (PAYMENTS, not bills are what counts). The first $2,250 of your bills don't count (7.5% of AGI). You can count $2,750 towards your itemized deductions, but you've still got to come up with another $2,401 in deductions before it is more beneficial for you to itemize than claim the standard deduction.

Answer 2

The bills don't get deducted from your taxes, although some of the payments you make might get deducted from your income before your taxes are figured.

To deduct medical expenses, you have to itemize rather than taking the standard deduction. Medical expenses that are over 7.5% of your adjusted gross income count as itemized deductions, as do various other items - download 1040 Schedule A and its instructions to see what items you can use as itemized deductions.

If your itemized deductions total more than your standard deduction, then you use the Schedule A total instead of the standard deduction when you figure your taxes.

Answer 3

Medical, dental, vision and prescription drugs can be deducted on Schedule A if you itemize. The amount of the bills over 7.5% of your adjusted gross income can be deducted. A better option than this is to open a flexible spending account if your employer offers one. Then you won't pay any federal income tax, social security or medicare taxes on those expenses as well as over the counter medicine (which isn't deductible on the Sched. A).

Answer 4

Bills do not get deducted only the Payments you make towards medical bills in the tax year! SO, if you want to make the most of a particular tax year you might consider when you pay your medical bills (especially the ones at the end of a year)

Answer 5

The medical deduction counts if your medical bills are more than 7.5% of your adjusted gross income. The adjusted gross income is the last line of the first page of the 1040 income tax return. You multiply that amount by 7.5% and all the medical bills that are over that limit can be deducted on Schedule A.