If your deductions are itemized and dental and medical
expenses are anticipated to be included then with the help of IRS publication
502 you can determine which expenses will actually qualify during a tax year.
After calculating the sum of all the medical and dental bills that are
deductible, you can deduct any portion that exceeds 7.5% of your AGI.
Dental and medical expenses that you incurred for
prevention, diagnosis and treatment of either physical or mental illness are
defined by IRS publication 502. Equipment expenditure and cost of diagnostic
services are also included along with the supplies that are necessary for
servicing these particular conditions. Apart from the prescribed medication
insulin is the solitary nonprescription material that can be deducted and
cosmetic surgeries are not also covered by the IRS definition.
Eligibility for Deduction:
According to the guidelines set forth by IRS publication 502
an American tax-payer can claim deductions during a tax year if the expenses
are actually incurred. As per the guidelines, if the payment for a certain
treatment is made one year and the treatment actually takes place in the
following tax year, the expenses can be reported on the tax return of the
previous year. According to this publication an expense is to be reported in
the year, during which it was incurred and not with the year when the services
were actually received.
IRS Form 2106
IRS Form 2106
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