If you itemize your federal tax deductions on Schedule A, you can deduct medical expenses that exceed 7.5 percent of your adjusted gross income. Many people automatically assume that, except in extreme circumstances, exceeding the minimum threshold is unlikely, especially if they have medical insurance, but that is not necessarily the case. Often, tax filers overlook legitimate medical deductions because they are unaware that the item is an allowed medical expense.
Deduct Your Insurance Premiums
If you pay for medical, dental, vision or long-term care insurance that is not covered under an employer's pretax plan, you can deduct the entire cost of the annual premium paid as a medical expense. If you receive advance payment tax credits for health coverage, you must reduce the total cost of the insurance premiums by the credit amount. Cobra payments for continued insurance coverage from a previous employer are also deductible.
Join a Weight-Loss or Smoking Cessation Program
You can deduct the fees for joining and attending weight-loss program meetings as long as you use the program to lose weight due to a doctor-diagnosed condition such as heart disease or obesity. Unfortunately, the cost of a gym membership is not an eligible expense. The criteria for taking a deduction for a smoking cessation programs is similar to that of weight-loss programs. The cost of the program and meeting attendance is deductible but non-prescribed items, such as nicotine gum, are not deductible.
Remodel Your Home to Accommodate a Disability
If you make improvements to your home in order to accommodate a wheelchair or the use of other necessary medical equipment, you can take a medical deduction for the entire amount of the improvement less any increase in your home's value due to the improvement.
Keep Your Receipts for Co-Pays and Unreimbursed Medical Items
Your doctor visit and prescription co-pays are eligible for the medical deduction as long as you do not receive reimbursement from a medical flexible spending account. Other common items that qualify for the medical deduction include bandages, contact lenses, eyeglasses and pregnancy test kits.
Attend a Medical Conference
If you attend a medical conference related to a chronic issue that you, your spouse or your dependent suffers from, you can deduct the conference fee as well as travel costs to attend the conference, such as lodging and transportation. If you drive to the conference, you can either deduct the actual expense for gas and oil or take a standard mileage deduction for the number of miles driven. Make sure you document the mileage before you begin your trip. The IRS also caps the deductible expense for lodging at $50 per night, as of 2010.
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