The United States is in Full Swing of Tax Season
Starting on January 13th, the Internal Revenue Service (IRS) has been receiving and processing tax returns for millions of taxpayers in the United States. The tax season deadline is April 18th, which means taxpayers have a limited amount of time to file their taxes.
If you have yet to complete your tax returns and have had any emergency or medical expenses over the last year, the IRS allows you to deduct these expenses on your tax return. Doing so can help reduce your tax bill. Below are the steps you need to take to make this deduction:
Conditions for Deducting Medical Bills with the IRS
For the tax year 2022, the IRS allows taxpayers to deduct unreimbursed medical expenses as long as their qualified bills exceed 7.5 percent of their adjusted gross income (AGI). To calculate this amount, you will need to multiply your AGI by 0.075 to find the percentage that is deductible. For example, if your AGI is $45,000 and your medical bill is $5,475, the multiplication results in a total of $3,375, leaving a deduction of $2,100.
It’s important to note that for the deduction to be valid, you must itemize it on Schedule A of your tax return.
Eligible Medical Expenses
The IRS allows taxpayers to deduct unreimbursed medical expenses for the following:
- Preventive care
- Dental and vision care
- Visits to psychologists and psychiatrists
- Prescription drugs
- Glasses and contact lenses
- Dentures and hearing aids
- Expenses incurred for qualified medical care travel
By following these simple steps and understanding the rules and regulations set by the IRS, you can reduce your tax bill and get the most out of your tax returns.