I am in need of a prosthetic leg and cost around $40,000. Is this tax deductible?

Answer 1

if you are paying for it, then that would be a deductible medical expense and would be reported on Schedule A - Itemized Deductions under medical and dental expenses, and the total deductible medical expenses would have to exceed 7.5% (which if you've spent $40,000 for an artificial leg it more than likely should be) for the excess to be deductible, and you have to itemize to get any benefit. Also, some states allow the medical deduction to carry over from the federal return onto the state return (Massachusetts is one of those states).

I've attached a couple of links to deductible medical expenses

Answer 2

How is the $40,000 cost being paid? Any amount paid by insurance/medicare/medicaid would not be a deduction for you. If you are paying any part of this cost from a tax-sheltered account such as a Health Savings Account or flexible spending account, that is not deductible.

If you are paying any of this with your own funds that are not tax-sheltered, then you do have a medical deduction for that amount.

Keep a record of any expenses you paid "out-of-pocket" including medical travel, related equipment and supplies. The expenses you paid in 2007 in excess of 7.5% of your adjusted gross income can be deducted on Schedule A of your Form 1040.

Answer 3

It's deductible as a medical expense in the year paid. To deduct medical expenses, you have to itemize, and can only include the part of your total medical expenses that's over 7.5% of your adjusted gross income.

If any of it is reimbursed by any program such as insurance, you can only include the amount that you actually pay.

Answer 4

It is a medical expense, thus it is deductible from AGI. There is a limit though, you can only deduct anything above 7.5% of your adjusted gross income (AGI).

Answer 5

YES--- are you a veteran--if so check at the VA for a leg

Answer 6

yes