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(Including the Health Coverage Tax Credit)For use in preparing Returns Publication 502 - Introductory MaterialFuture DevelopmentsFor the latest information about developments related to Pub. 502, such as legislation enacted after it was published, go to IRS.gov/Pub502. What's NewStandard mileage rate. The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 16 cents a mile. See Transportation under What Medical Expenses Are Includible, later. RemindersPhotographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800-843-5678) if you recognize a child. IntroductionThis publication explains the itemized deduction for medical and dental expenses that you claim on Schedule A (Form 1040). It discusses what expenses, and whose expenses, you can and can't include in figuring the deduction. It explains how to treat reimbursements and how to figure the deduction. It also tells you how to report the deduction on your tax return and what to do if you sell medical property or receive damages for a personal injury. Medical expenses include dental expenses, and in this publication the term “medical expenses” is often used to refer to medical and dental expenses. You can deduct on Schedule A (Form 1040) only the part of your medical and dental expenses that is more than 7.5% of your adjusted gross income (AGI). This publication also explains how to treat impairment-related work expenses, health insurance premiums if you are self-employed, and the health coverage tax credit that is available to certain individuals. Pub. 502 covers many common medical expenses but not every possible medical expense. If you can't find the expense you are looking for, refer to the definition of medical expenses under What Are Medical Expenses, later. See How To Get Tax Help near the end of this publication for information about getting publications and forms. Comments and suggestions. We welcome your comments about this publication and suggestions for future editions. You can send us comments through IRS.gov/FormComments. Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address. Getting answers to your tax questions. If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/Help/ITA where you can find topics by using the search feature or viewing the categories listed. Getting tax forms, instructions, and publications. Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications. Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online. Useful ItemsYou may want to see: Publication
Forms (and Instructions)
Publication 502 - Main ContentsWhat Are Medical Expenses?Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness. They don't include expenses that are merely beneficial to general health, such as vitamins or a vacation. Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. What Expenses Can You Include This Year?You can include only the medical and dental expenses you paid this year, but generally not payments for medical or dental care you will receive in a future year. (But see Decedent under Whose Medical Expenses Can You Include, later, for an exception.) This is not the rule for determining whether an expense can be reimbursed by a flexible spending arrangement (FSA). If you pay medical expenses by check, the day you mail or deliver the check is generally the date of payment. If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged. If you didn't claim a medical or dental expense that would have been deductible in an earlier year, you can file Form 1040-X, Amended U.S. Individual Income Tax Return, to claim a refund for the year in which you overlooked the expense. Don't claim the expense on this year's return. Generally, a claim for refund must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. You can't include medical expenses that were paid by insurance companies or other sources. This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. Separate returns. If you and your spouse live in a noncommunity property state and file separate returns, each of you can include only the medical expenses each actually paid. Any medical expenses paid out of a joint checking account in which you and your spouse have the same interest are considered to have been paid equally by each of you, unless you can show otherwise. Community property states. If you and your spouse live in a community property state and file separate returns or are registered domestic partners in Nevada, Washington, or California, any medical expenses paid out of community funds are divided equally. Generally, each of you should include half the expenses. If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. If you live in a community property state and aren't filing a joint return, see Pub. 555, Community Property. How Much of the Expenses Can You Deduct?Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5% of your AGI. Whose Medical Expenses Can You Include?You can generally include medical expenses you pay for yourself, as well as those you pay for someone who was your spouse or your dependent either when the services were provided or when you paid for them. There are different rules for decedents and for individuals who are the subject of multiple support agreements. See Support claimed under a multiple support agreement, later, under Qualifying Relative. SpouseYou can include medical expenses you paid for your spouse. To include these expenses, you must have been married either at the time your spouse received the medical services or at the time you paid the medical expenses. Example 1. Mary received medical treatment before she married Bill. Bill paid for the treatment after they married. Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. If Mary had paid the expenses, Bill couldn't include Mary's expenses on his separate return. Mary would include the amounts she paid during the year on her separate return. If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Example 2. This year, John paid medical expenses for his wife Louise, who died last year. John married Belle this year and they file a joint return. Because John was married to Louise when she received the medical services, he can include those expenses in figuring his medical expense deduction for this year. DependentYou can include medical expenses you paid for your dependent. For you to include these expenses, the person must have been your dependent either at the time the medical services were provided or at the time you paid the expenses. A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met.
You can include medical expenses you paid for an individual that would have been your dependent except that:
Exception for adopted child. If you are a U.S. citizen or national and your adopted child lived with you as a member of your household for 2021, that child doesn't have to be a U.S. citizen or national, or a resident of the United States, Canada, or Mexico. Qualifying ChildA qualifying child is a child who:
Adopted child. A legally adopted child is treated as your own child. This child includes a child lawfully placed with you for legal adoption. You can include medical expenses that you paid for a child before adoption if the child qualified as your dependent when the medical services were provided or when the expenses were paid. If you pay back an adoption agency or other persons for medical expenses they paid under an agreement with you, you are treated as having paid those expenses provided you clearly substantiate that the payment is directly attributable to the medical care of the child. But if you pay the agency or other person for medical care that was provided and paid for before adoption negotiations began, you can't include them as medical expenses. .You may be able to take a credit for other expenses related to an adoption. See the Instructions for Form 8839, Qualified Adoption Expenses, for more information.. Child of divorced or separated parents. For purposes of the medical and dental expenses deduction, a child of divorced or separated parents can be treated as a dependent of both parents. Each parent can include the medical expenses he or she pays for the child, even if the other parent claims the child's dependency exemption, if:
This doesn't apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Qualifying RelativeA qualifying relative is a person:
Support claimed under a multiple support agreement. If you are considered to have provided more than half of a qualifying relative's support under a multiple support agreement, you can include medical expenses you pay for that person. A multiple support agreement is used when two or more people provide more than half of a person's support, but no one alone provides more than half. Any medical expenses paid by others who joined you in the agreement can't be included as medical expenses by anyone. However, you can include the entire unreimbursed amount you paid for medical expenses. Example. You and your three brothers each provide one-fourth of your mother's total support. Under a multiple support agreement, you treat your mother as your dependent. You paid all of her medical expenses. Your brothers repaid you for three-fourths of these expenses. In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Your brothers can't include any part of the expenses. However, if you and your brothers share the nonmedical support items and you separately pay all of your mother's medical expenses, you can include the unreimbursed amount you paid for her medical expenses in your medical expenses. DecedentMedical expenses paid before death by the decedent are included in figuring any deduction for medical and dental expenses on the decedent's final income tax return. This includes expenses for the decedent's spouse and dependents as well as for the decedent. The survivor or personal representative of a decedent can choose to treat certain expenses paid by the decedent's estate for the decedent's medical care as paid by the decedent at the time the medical services were provided. The expenses must be paid within the 1-year period beginning with the day after the date of death. If you are the survivor or personal representative making this choice, you must attach a statement to the decedent's Form 1040 or 1040-SR (or the decedent's amended return, Form 1040-X) saying that the expenses haven't been and won't be claimed on the estate tax return. . Qualified medical expenses paid before death by the decedent aren't deductible if paid with a tax-free distribution from any Archer MSA, Medicare Advantage MSA, or health savings account. .What if the decedent's return had been filed and the medical expenses weren't included? Form 1040-X can be filed for the year or years the expenses are treated as paid, unless the period for claiming a refund has passed. Generally, a claim for refund must be filed within 3 years of the date the original return was filed, or within 2 years from the time the tax was paid, whichever date is later. Example. John properly filed his 2020 income tax return. He died in 2021 with unpaid medical expenses of $1,500 from 2020 and $1,800 in 2021. If the expenses are paid within the 1-year period, his survivor or personal representative can file an amended return for 2020 claiming a deduction based on the $1,500 medical expenses. The $1,800 of medical expenses from 2021 can be included on the decedent's final return for 2021. What if you pay medical expenses of a deceased spouse or dependent? If you paid medical expenses for your deceased spouse or dependent, include them as medical expenses on your Schedule A (Form 1040) in the year paid, whether they are paid before or after the decedent's death. The expenses can be included if the person was your spouse or dependent either at the time the medical services were provided or at the time you paid the expenses. What Medical Expenses Are Includible?Following is a list of items that you can include in figuring your medical expense deduction. The items are listed in alphabetical order. This list doesn't include all possible medical expenses. To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses, earlier. AbortionYou can include in medical expenses the amount you pay for a legal abortion. AcupunctureYou can include in medical expenses the amount you pay for acupuncture. AlcoholismYou can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. This includes meals and lodging provided by the center during treatment. You can also include in medical expenses amounts you pay for transportation to and from alcohol recovery support organization (for example, Alcoholics Anonymous) meetings in your community if the attendance is pursuant to medical advice that membership in Alcoholics Anonymous is necessary for the treatment of a disease involving the excessive use of alcohol. AmbulanceYou can include in medical expenses amounts you pay for ambulance service. Artificial LimbYou can include in medical expenses the amount you pay for an artificial limb. Artificial TeethYou can include in medical expenses the amount you pay for artificial teeth. BandagesYou can include in medical expenses the cost of medical supplies such as bandages. Birth Control PillsYou can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. Body ScanYou can include in medical expenses the cost of an electronic body scan. Braille Books and MagazinesYou can include in medical expenses the part of the cost of Braille books and magazines for use by a visually impaired person that is more than the cost of regular printed editions. Breast Pumps and SuppliesYou can include in medical expenses the cost of breast pumps and supplies that assist lactation. This doesn’t include the costs of excess bottles for food storage. Breast Reconstruction SurgeryYou can include in medical expenses the amounts you pay for breast reconstruction surgery, as well as breast prosthesis, following a mastectomy for cancer. See Cosmetic Surgery, later. Capital ExpensesYou can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. The cost of the improvement is reduced by the increase in the value of your property. The difference is a medical expense. If the value of your property isn't increased by the improvement, the entire cost is included as a medical expense. Certain improvements made to accommodate a home to your disabled condition, or that of your spouse or your dependents who live with you, don't usually increase the value of the home and the cost can be included in full as medical expenses. These improvements include, but aren't limited to, the following items.
Only reasonable costs to accommodate a home to your disabled condition are considered medical care. Additional costs for personal motives, such as for architectural or aesthetic reasons, aren't medical expenses. Capital expense worksheet. Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. Worksheet A. Capital Expense Worksheet
Operation and upkeep. Amounts you pay for operation and upkeep of a capital asset qualify as medical expenses as long as the main reason for them is medical care. This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. Improvements to property rented by a person with a disability. Amounts paid to buy and install special plumbing fixtures for a person with a disability, mainly for medical reasons, in a rented house are medical expenses. Example. John has arthritis and a heart condition. He can't climb stairs or get into a bathtub. On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. The landlord didn't pay any of the cost of buying and installing the special plumbing and didn't lower the rent. John can include in medical expenses the entire amount he paid. CarYou can include in medical expenses the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability. Special design. You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. Cost of operation. The includible costs of using a car for medical reasons are explained under Transportation, later. ChiropractorYou can include in medical expenses fees you pay to a chiropractor for medical care. Christian Science PractitionerYou can include in medical expenses fees you pay to Christian Science practitioners for medical care. Contact LensesYou can include in medical expenses amounts you pay for contact lenses needed for medical reasons. You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. See Eyeglasses and Eye Surgery, later. CrutchesYou can include in medical expenses the amount you pay to buy or rent crutches. Dental TreatmentYou can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Preventive treatment includes the services of a dental hygienist or dentist for such procedures as teeth cleaning, the application of sealants, and fluoride treatments to prevent tooth decay. Treatment to alleviate dental disease includes services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. But see Teeth Whitening under What Expenses Aren't Includible, later. Diagnostic DevicesYou can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. Example. You have diabetes and use a blood sugar test kit to monitor your blood sugar level. You can include the cost of the blood sugar test kit in your medical expenses. Disabled Dependent Care ExpensesSome disabled dependent care expenses may qualify as either:
You can choose to apply them either way as long as you don't use the same expenses to claim both a credit and a medical expense deduction. Drug AddictionYou can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. This includes meals and lodging provided by the center during treatment. You can also include in medical expenses amounts you pay for transportaion to and from drug treatment meetings in your community if the attendance is pursuant to medical advice that the membership is necessary for the treatment of a disease involving the excessive use of drugs. Eye ExamYou can include in medical expenses the amount you pay for eye examinations.
EyeglassesYou can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. See Contact Lenses, earlier, for more information. Eye SurgeryYou can include in medical expenses the amount you pay for eye surgery to treat defective vision, such as laser eye surgery or radial keratotomy. Fertility EnhancementYou can include in medical expenses the cost of the following procedures performed on yourself, your spouse, or your dependent to overcome an inability to have children.
Guide Dog or Other Service AnimalYou can include in medical expenses the costs of buying, training, and maintaining a guide dog or other service animal to assist a visually impaired or hearing disabled person, or a person with other physical disabilities. In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. Health InstituteYou can include in medical expenses fees you pay for treatment at a health institute only if the treatment is prescribed by a physician and the physician issues a statement that the treatment is necessary to alleviate a physical or mental disability or illness of the individual receiving the treatment. Health Maintenance Organization (HMO)You can include in medical expenses amounts you pay to entitle you, your spouse, or a dependent to receive medical care from an HMO. These amounts are treated as medical insurance premiums. See Insurance Premiums, later. Hearing AidsYou can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. Hospital ServicesYou can include in medical expenses amounts you pay for the cost of inpatient care at a hospital or similar institution if a principal reason for being there is to receive medical care. This includes amounts paid for meals and lodging. Also see Lodging, later. Insurance PremiumsYou can include in medical expenses insurance premiums you pay for policies that cover medical care. You can't include in medical expenses insurance premiums that were paid and for which you are claiming a credit or deduction. Medical care policies can provide payment for treatment that includes:
If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Health Coverage Tax Credit (HCTC)If you were an eligible trade adjustment assistance (TAA) recipient, an alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) payee, you must complete Form 8885 before completing Schedule A, line 1. When figuring the amount of insurance premiums you can deduct on Schedule A, don't include any of the following.
If advance payments of the premium tax credit were made or you are eligible for both the premium tax credit and the HCTC and elect to take the HCTC, see the Instructions for Form 8885 to see how to figure your credit. Employer-Sponsored Health Insurance PlanDon't include in your medical and dental expenses any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included on your Form W-2, Wage and Tax Statement. Also, don't include any other medical and dental expenses paid by the plan unless the amount paid is included on your Form W-2. Example. You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Because you are an employee whose insurance premiums are paid with money that is never included in your gross income, you can't deduct the premiums paid with that money. Long-term care services. Contributions made by your employer to provide coverage for qualified long-term care services under a flexible spending or similar arrangement must be included in your income. This amount will be reported as wages on your Form W-2. Retired public safety officers. If you are a retired public safety officer, don't include as medical expenses any health or long-term care insurance premiums that you elected to have paid with tax-free distributions from a retirement plan. This applies only to distributions that would otherwise be included in income. Health reimbursement arrangement (HRA). If you have medical expenses that are reimbursed by a health reimbursement arrangement, you can't include those expenses in your medical expenses. Medicare Part AIf you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare Part A. The payroll tax paid for Medicare Part A isn't a medical expense. If you aren't covered under social security (or weren't a government employee who paid Medicare tax), you can voluntarily enroll in Medicare Part A. In this situation, you can include the premiums you paid for Medicare Part A as a medical expense. Medicare Part BMedicare Part B is a supplemental medical insurance. Premiums you pay for Medicare Part B are a medical expense. Check the information you received from the Social Security Administration to find out your premium. Medicare Part DMedicare Part D is a voluntary prescription drug insurance program for persons with Medicare Part A or B. You can include as a medical expense premiums you pay for Medicare Part D. Prepaid Insurance PremiumsPremiums you pay before you are age 65 for insurance for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are:
Unused Sick Leave Used To Pay PremiumsYou must include in gross income cash payments you receive at the time of retirement for unused sick leave. You must also include in gross income the value of unused sick leave that, at your option, your employer applies to the cost of your continuing participation in your employer's health plan after you retire. You can include this cost of continuing participation in the health plan as a medical expense. If you participate in a health plan where your employer automatically applies the value of unused sick leave to the cost of your continuing participation in the health plan (and you don't have the option to receive cash), don't include the value of the unused sick leave in gross income. You can't include this cost of continuing participation in that health plan as a medical expense. Insurance Premiums You Can't IncludeYou can't include premiums you pay for:
Taxes imposed by any governmental unit, such as Medicare taxes, aren't insurance premiums. Coverage for nondependents. Generally, you can't deduct any additional premium you pay as the result of including on your policy someone who isn't your spouse or dependent, even if that person is your child under age 27. However, you can deduct the additional premium if that person is:
Also, if you had family coverage when you added this individual to your policy and your premiums didn't increase, you can enter on Schedule A (Form 1040) the full amount of your medical and dental insurance premiums. Intellectually and Developmentally Disabled, Special Home forYou can include in medical expenses the cost of keeping a person who is intellectually and developmentally disabled in a special home, not the home of a relative, on the recommendation of a psychiatrist to help the person adjust from life in a mental hospital to community living. Laboratory FeesYou can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. Lead-Based Paint RemovalYou can include in medical expenses the cost of removing lead-based paints from surfaces in your home to prevent a child who has or had lead poisoning from eating the paint. These surfaces must be in poor repair (peeling or cracking) or within the child's reach. The cost of repainting the scraped area isn't a medical expense. If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. See Capital Expenses, earlier. Don't include the cost of painting the wallboard as a medical expense. Legal FeesYou can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. However, you can't include in medical expenses fees for the management of a guardianship estate, fees for conducting the affairs of the person being treated, or other fees that aren't necessary for medical care. Lifetime Care—Advance PaymentsYou can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. The part of the payment you include is the amount properly allocable to medical care. The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. You can use a statement from the retirement home to prove the amount properly allocable to medical care. The statement must be based either on the home's prior experience or on information from a comparable home. Dependents with disabilities. You can include in medical expenses advance payments to a private institution for lifetime care, treatment, and training of your physically or mentally impaired child upon your death or when you become unable to provide care. The payments must be a condition for the institution's future acceptance of your child and must not be refundable. Payments for future medical care. Generally, you can't include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. This rule doesn't apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. LodgingYou can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to receive medical care. See Nursing Home, later. You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. You can include the cost of such lodging while away from home if all of the following requirements are met.
The amount you include in medical expenses for lodging can't be more than $50 for each night for each person. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals aren't included. Don't include the cost of lodging while away from home for medical treatment if that treatment isn't received from a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital or if that lodging isn't primarily for or essential to the medical care received. Long-Term CareYou can include in medical expenses amounts paid for qualified long-term care services and certain amounts of premiums paid for qualified long-term care insurance contracts.
Qualified Long-Term Care ServicesQualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:
Chronically ill individual. An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.
Maintenance and personal care services. Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment). Qualified Long-Term Care Insurance ContractsA qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. The contract must:
The amount of qualified long-term care premiums you can include is limited. You can include the following as medical expenses on Schedule A (Form 1040).
Note. The limit on premiums is for each person. Also, if you are an eligible retired public safety officer, you can't include premiums for long-term care insurance if you elected to pay these premiums with tax-free distributions from a qualified retirement plan made directly to the insurance provider and these distributions would otherwise have been included in your income. MealsYou can include in medical expenses the cost of meals at a hospital or similar institution if a principal reason for being there is to get medical care. You can't include in medical expenses the cost of meals that aren't part of inpatient care. Also see Weight-Loss Program and Nutritional Supplements, later. Medical ConferencesYou can include in medical expenses amounts paid for admission and transportation to a medical conference if the medical conference concerns the chronic illness of yourself, your spouse, or your dependent. The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. The majority of the time spent at the conference must be spent attending sessions on medical information. . The cost of meals and lodging while attending the conference isn't deductible as a medical expense..Medical Information PlanYou can include in medical expenses amounts paid to a plan that keeps medical information in a computer data bank and retrieves and furnishes the information upon request to an attending physician. MedicinesYou can include in medical expenses amounts you pay for prescribed medicines and drugs. A prescribed drug is one that requires a prescription by a doctor for its use by an individual. You can also include amounts you pay for insulin. Except for insulin, you can't include in medical expenses amounts you pay for a drug that isn't prescribed. Nursing HomeYou can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Don't include the cost of meals and lodging if the reason for being in the home is personal. You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Nursing ServicesYou can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. These services can be provided in your home or another care facility. Generally, only the amount spent for nursing services is a medical expense. If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. For example, because of your medical condition, you pay a visiting nurse $300 per week for medical and household services. She spends 10% of her time doing household services such as washing dishes and laundry. You can include only $270 per week as medical expenses. The $30 (10% × $300) allocated to household services can't be included. However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Maintenance and personal care services under Long-Term Care, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. See Pub. 503. You can also include in medical expenses part of the amount you pay for that attendant's meals. Divide the food expense among the household members to find the cost of the attendant's food. Then divide that cost in the same manner as in the preceding paragraph. If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Employment taxes. You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for an attendant who provides medical care. If the attendant also provides personal and household services, you can include as a medical expense only the amount of employment taxes paid for medical services, as explained earlier. For information on employment tax responsibilities of household employers, see Pub. 926. OperationsYou can include in medical expenses amounts you pay for legal operations that aren't for cosmetic surgery. See Cosmetic Surgery under What Expenses Aren't Includible, later. OsteopathYou can include in medical expenses amounts you pay to an osteopath for medical care. OxygenYou can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. Physical ExaminationYou can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. You don't have to be ill at the time of the examination. Pregnancy Test KitYou can include in medical expenses the amount you pay to purchase a pregnancy test kit to determine if you are pregnant. Premium Tax CreditYou can't include in medical expenses the amount of health insurance premiums paid by or through the premium tax credit. You also can't include in medical expenses any amount of advance payments of the premium tax credit made that you did not have to pay back. However, any amount of advance payments of the premium tax credit that you did have to pay back can be included in medical expenses.
Example 1. Amy is under age 65 and unmarried. The cost of her health insurance premiums in 2021 is $8,700. Advance payments of the premium tax credit of $4,200 are made to the insurance company and Amy pays premiums of $4,500. On her 2021 tax return, Amy is allowed a premium tax credit of $3,600 and must repay $600 excess advance credit payments (which is less than the repayment limitation). Amy is treated as paying $5,100 ($8,700 less the allowed premium tax credit of $3,600) for health insurance premiums in 2021. When Amy fills out her Schedule A, she enters $5,100 on line 1. Example 2. The facts are the same as in Example 1, except Amy is allowed a premium tax credit of $4,900 on her tax return and receives a net premium tax credit of $700. Amy is treated as paying $3,800 ($8,700 less the allowed premium tax credit of $4,900) for health insurance premiums in 2021. When Amy fills out her Schedule A, she enters $3,800 on line 1. Psychiatric CareYou can include in medical expenses amounts you pay for psychiatric care. This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. See Psychoanalysis next and Transportation, later. PsychoanalysisYou can include in medical expenses payments for psychoanalysis. However, you can't include payments for psychoanalysis that is part of required training to be a psychoanalyst. PsychologistYou can include in medical expenses amounts you pay to a psychologist for medical care. Special EducationYou can include in medical expenses fees you pay on a doctor's recommendation for a child's tutoring by a teacher who is specially trained and qualified to work with children who have learning disabilities caused by mental or physical impairments, including nervous system disorders. You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. Overcoming the learning disabilities must be the primary reason for attending the school, and any ordinary education received must be incidental to the special education provided. Special education includes:
You can't include in medical expenses the cost of sending a child with behavioral problems to a school where the course of study and the disciplinary methods have a beneficial effect on the child's attitude if the availability of medical care in the school isn't a principal reason for sending the student there. SterilizationYou can include in medical expenses the cost of a legal sterilization (a legally performed operation to make a person unable to have children). Also see Vasectomy, later. Stop-Smoking ProgramsYou can include in medical expenses amounts you pay for a program to stop smoking. However, you can't include in medical expenses amounts you pay for drugs that don't require a prescription, such as nicotine gum or patches, that are designed to help stop smoking. TelephoneYou can include in medical expenses the cost of special telephone equipment that lets a person who is deaf, hard of hearing, or has a speech disability communicate over a regular telephone. This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. You can also include the cost of repairing the equipment. TelevisionYou can include in medical expenses the cost of equipment that displays the audio part of television programs as subtitles for persons with a hearing disability. This may be the cost of an adapter that attaches to a regular set. It may also be the part of the cost of a specially equipped television that exceeds the cost of the same model regular television set. TherapyYou can include in medical expenses amounts you pay for therapy received as medical treatment. TransplantsYou can include in medical expenses amounts paid for medical care you receive because you are a donor or a possible donor of a kidney or other organ. This includes transportation. You can include any expenses you pay for the medical care of a donor in connection with the donation of an organ to you, your spouse, or dependent. This includes transportation. TransportationYou can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. You can include:
Car expenses. You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. You can't include depreciation, insurance, general repair, or maintenance expenses. If you don't want to use your actual expenses for 2021, you can use the standard medical mileage rate of 16 cents a mile. You can also include parking fees and tolls. You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. Example. In 2021, Bill Jones drove 2,800 miles for medical reasons. He spent $400 for gas, $30 for oil, and $100 for tolls and parking. He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. He figures the actual expenses first. He adds the $400 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $530. He then figures the standard mileage amount. He multiplies 2,800 miles by 16 cents a mile for a total of $448. He then adds the $100 tolls and parking for a total of $548. Bill includes the $548 of car expenses with his other medical expenses for the year because the $548 is more than the $530 he figured using actual expenses. Transportation expenses you can't include. You can't include in medical expenses the cost of transportation in the following situations.
TripsYou can include in medical expenses amounts you pay for transportation to another city if the trip is primarily for, and essential to, receiving medical services. You may be able to include up to $50 for each night for each person. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Meals aren't included. See Lodging, earlier. You can't include in medical expenses a trip or vacation taken merely for a change in environment, improvement of morale, or general improvement of health, even if the trip is made on the advice of a doctor. However, see Medical Conferences, earlier. TuitionUnder special circumstances, you can include charges for tuition in medical expenses. See Special Education, earlier. A lump-sum fee which includes education, board, and medical care—without distinguishing which part of the fee results from medical care—is not considered an amount payable for medical care. However, you can include charges for a health plan included in a lump-sum tuition fee if the charges are separately stated or can easily be obtained from the school. VasectomyYou can include in medical expenses the amount you pay for a vasectomy. Weight-Loss ProgramYou can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. You can't include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities. You can't include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. You can include the cost of special food in medical expenses only if:
The amount you can include in medical expenses is limited to the amount by which the cost of the special food exceeds the cost of a normal diet. See also Weight-Loss Program under What Expenses Aren't Includible, later. WheelchairYou can include in medical expenses the amounts you pay for a wheelchair used for the relief of a sickness or disability. The cost of operating and maintaining the wheelchair is also a medical expense. WigYou can include in medical expenses the cost of a wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his or her hair from disease. X-rayYou can include in medical expenses amounts you pay for X-rays for medical reasons. What Expenses Aren't Includible?Following is a list of some items that you can't include in figuring your medical expense deduction. The items are listed in alphabetical order. Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy BabyYou can't include in medical expenses amounts you pay for the care of children, even if the expenses enable you, your spouse, or your dependent to get medical or dental treatment. Also, any expense allowed as a childcare credit can't be treated as an expense paid for medical care. Controlled SubstancesYou can't include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc.) that aren't legal under federal law, even if such substances are legalized by state law. Cosmetic SurgeryGenerally, you can't include in medical expenses the amount you pay for cosmetic surgery. This includes any procedure that is directed at improving the patient's appearance and doesn't meaningfully promote the proper function of the body or prevent or treat illness or disease. You generally can't include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. Example. An individual undergoes surgery that removes a breast as part of treatment for cancer. She pays a surgeon to reconstruct the breast. The surgery to reconstruct the breast corrects a deformity directly related to the disease. The cost of the surgery is includible in her medical expenses. Dancing LessonsYou can't include in medical expenses the cost of dancing lessons, swimming lessons, etc., even if they are recommended by a doctor, if they are only for the improvement of general health. Diaper ServiceYou can't include in medical expenses the amount you pay for diapers or diaper services, unless they are needed to relieve the effects of a particular disease. Flexible Spending ArrangementYou can't include in medical expenses amounts for which you are fully reimbursed by your flexible spending arrangement if you contribute a part of your income on a pre-tax basis to pay for the qualified benefit. Funeral ExpensesYou can't include in medical expenses amounts you pay for funerals. Future Medical CareGenerally, you can't include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. This rule doesn't apply in situations where the future care is purchased in connection with obtaining lifetime care, as explained under Lifetime Care—Advance Payments, or qualified long-term care insurance contracts, as explained under Long-Term Care, earlier. Health Club DuesYou can't include in medical expenses health club dues or amounts paid to improve one's general health or to relieve physical or mental discomfort not related to a particular medical condition. You can't include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Health Coverage Tax Credit (HCTC)You can't include in medical expenses amounts you pay for health insurance you use in figuring your health coverage tax credit. For more information, see the Instructions for Form 8885. Health Savings AccountsYou can’t include in medical expenses amounts you contribute to a health savings account. You can’t include expenses you pay for with a tax-free distribution from your health savings account. You also can’t use other funds equal to the amount of the distribution and include the expenses. For more information, see Pub. 969. Household HelpYou can't include in medical expenses the cost of household help, even if such help is recommended by a doctor. This is a personal expense that isn't deductible. However, you may be able to include certain expenses paid to a person providing nursing-type services. For more information, see Nursing Services, earlier, under What Medical Expenses Are Includible. Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. For more information, see Long-Term Care, earlier, under What Medical Expenses Are Includible. Illegal Operations and TreatmentsYou can't include in medical expenses amounts you pay for illegal operations, treatments, or controlled substances whether rendered or prescribed by licensed or unlicensed practitioners. Insurance PremiumsSee Insurance Premiums under What Medical Expenses Are Includible, earlier. Maternity ClothesYou can't include in medical expenses amounts you pay for maternity clothes. Medical Savings Account (MSA)You can't include in medical expenses amounts you contribute to an Archer MSA. You can't include expenses you pay for with a tax-free distribution from your Archer MSA. You also can't use other funds equal to the amount of the distribution and include the expenses. For more information on Archer MSAs, see Pub. 969. Medicines and Drugs From Other CountriesIn general, you can't include in your medical expenses the cost of a prescribed drug brought in (or ordered and shipped) from another country. You can only include the cost of a drug that was imported legally. For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. You can include the cost of a prescribed drug you purchase and consume in another country if the drug is legal in both the other country and the United States. Nonprescription Drugs and MedicinesExcept for insulin, you can't include in medical expenses amounts you pay for a drug that isn't prescribed. A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Example. Your doctor recommends that you take aspirin. Because aspirin is a drug that doesn't require a physician's prescription for its use by an individual, you can't include its cost in your medical expenses. Nutritional SupplementsYou can't include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc., unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. These items are taken to maintain your ordinary good health and aren't for medical care. Personal Use ItemsYou can't include in medical expenses the cost of an item ordinarily used for personal, living, or family purposes unless it is used primarily to prevent or alleviate a physical or mental disability or illness. For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. In order to accommodate an individual with a physical disability, you may have to purchase an item ordinarily used as a personal, living, or family item in a special form. You can include the excess of the cost of the item in a special form over the cost of the item in normal form as a medical expense. See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. Premium Tax CreditYou can't include in medical expenses the amount of health insurance premiums paid by or through the premium tax credit. You also can't include in medical expenses any amount of advance payments of the premium tax credit made that you did not have to pay back. However, any amount of advance payments of the premium tax credit that you did have to pay back can be included in medical expenses. Teeth WhiteningYou can't include in medical expenses amounts paid to whiten teeth. See Cosmetic Surgery, earlier. Veterinary FeesYou generally can't include veterinary fees in your medical expenses, but see Guide Dog or Other Service Animal under What Medical Expenses Are Includible, earlier. Weight-Loss ProgramYou can't include in medical expenses the cost of a weight-loss program if the purpose of the weight loss is the improvement of appearance, general health, or sense of well-being. You can't include amounts you pay to lose weight unless the weight loss is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). If the weight-loss treatment isn't for a specific disease diagnosed by a physician, you can't include either the fees you pay for membership in a weight-reduction group or fees for attendance at periodic meetings. Also, you can't include membership dues in a gym, health club, or spa. You can't include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. See Weight-Loss Program under What Medical Expenses Are Includible, earlier. How Do You Treat Reimbursements?You can include in medical expenses only those amounts paid during the tax year for which you received no insurance or other reimbursement. Insurance ReimbursementYou must reduce your total medical expenses for the year by all reimbursements for medical expenses that you receive from insurance or other sources during the year. This includes payments from Medicare. Even if a policy provides reimbursement only for certain specific medical expenses, you must use amounts you receive from that policy to reduce your total medical expenses, including those it doesn't reimburse. Example. You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. The insurance you receive for the hospital and doctors' bills is more than their charges. In figuring your medical deduction, you must reduce the total amount you spent for medical care by the total amount of insurance you received, even if the policies don't cover some of your medical expenses. Health reimbursement arrangement (HRA). An HRA is an employer-funded plan that reimburses employees for medical care expenses and allows unused amounts to be carried forward. An HRA is funded solely by the employer and the reimbursements for medical expenses, up to a maximum dollar amount for a coverage period, aren't included in your income. Other reimbursements. Generally, you don't reduce medical expenses by payments you receive for:
You must, however, reduce your medical expenses by any part of these payments that is designated for medical costs. See How Do You Figure and Report the Deduction on Your Tax Return, later. For how to treat damages received for personal injury or sickness, see Damages for Personal Injuries, later. What if Your Insurance Reimbursement Is More Than Your Medical Expenses?If you are reimbursed more than your medical expenses, you may have to include the excess in income. You may want to use Figure 1 to help you decide if any of your reimbursement is taxable. Reimbursement Taxable? Figure 1. Is Your Excess Medical Reimbursement Taxable? Figure 1. Is Your Excess Medical Reimbursement Taxable? Summary: This flowchart is used to determine if any reimbursements you receive for your medical expenses is taxable. Start This is the starting of the flowchart. Decision (1) Was any part of your premiums paid by your employer?
Decision (2) Were your employer's contributions to your premiums included in your income?
Process (a) NONE of the excess reimbursement is taxable. Continue To End Decision (3) Did you pay any part of the premiums?
Process (b) ALL of the excess reimbursement is taxable. Continue To End Process (c) PART of the excess reimbursement is taxable. Footnote: See Premiums paid by you and your employer. Continue To End End This is the ending of the flowchart. Please click here for the text description of the image. Premiums paid by you. If you pay either the entire premium for your medical insurance or all the costs of a plan similar to medical insurance and your insurance payments or other reimbursements are more than your total medical expenses for the year, you have excess reimbursement. Generally, you don't include the excess reimbursement in your gross income. However, gross income does include total payments in excess of $400 a day ($146,000 for 2021) for qualified long-term care services. Premiums paid by you and your employer. If both you and your employer contribute to your medical insurance plan and your employer's contributions aren't included in your gross income, you must include in your gross income the part of your excess reimbursement that is from your employer's contribution. If you aren't covered by more than one policy, you can figure the amount of the excess reimbursement you must include in gross income using Worksheet B. If you are covered under more than one policy, see More than one policy, later. Worksheet B. Excess Reimbursement Includible in Income When You Have Only One Policy
Premiums paid by your employer. If your employer or your former employer pays the total cost of your medical insurance plan and your employer's contributions aren't included in your income, you must report all of your excess reimbursement as other income. More than one policy. If you are covered under more than one policy, the cost of at least one of which is paid by both you and your employer, you must first divide the medical expenses among the policies to figure the excess reimbursement from each policy. Then divide the policy costs to figure the part of any excess reimbursement that is from your employer's contribution. Any excess reimbursement that is due to your employer's contributions is includible in your income. You can figure the part of the excess reimbursement that is from your employer's contribution by using Worksheet C. Use Worksheet C only if both you and your employer paid part of the cost of at least one policy. If you had more than one policy, but you didn't share in the cost of at least one policy, don't use Worksheet C. Worksheet C. Excess Reimbursement Includible in Income When You Have More Than One Policy
What if You Receive Insurance Reimbursement in a Later Year?If you are reimbursed in a later year for medical expenses you deducted in an earlier year, you must generally report the reimbursement as income up to the amount you previously deducted as medical expenses. However, don't report as income the amount of reimbursement you received up to the amount of your medical deductions that didn't reduce your tax for the earlier year. For more information about the recovery of an amount that you claimed as an itemized deduction in an earlier year, see Recoveries in Pub. 525, Taxable and Nontaxable Income. What if You Are Reimbursed for Medical Expenses You Didn't Deduct?If you didn't deduct a medical expense in the year you paid it because your medical expenses weren't more than 7.5% of your AGI or because you didn't itemize deductions, don't include the reimbursement, up to the amount of the expense, in income. However, if the reimbursement is more than the expense, see What if Your Insurance Reimbursement Is More Than Your Medical Expenses, earlier. How Do You Figure and Report the Deduction on Your Tax Return?Once you have determined which medical expenses you can include, figure and report the deduction on your tax return. What Tax Form Do You Use?You report your medical expense deduction on Schedule A (Form 1040). See the Instructions for Schedule A (Form 1040) for more detailed information on figuring your medical and dental expense deduction. . Recordkeeping. You should keep records of your medical and dental expenses to support your deduction. Don't send these records with your paper return..Sale of Medical Equipment or PropertyIf you deduct the cost of medical equipment or property in one year and sell it in a later year, you may have a taxable gain. The taxable gain is the amount of the selling price that is more than the adjusted basis of the equipment or property. The adjusted basis is the portion of the cost of the equipment or property that you couldn't deduct because of the 7.5% or 10% AGI limit used to figure your medical deduction. Refer to your Schedule A for the year the cost was included to determine which limit applied to you. Use Worksheet D to figure the adjusted basis of the equipment or property. Worksheet D. Adjusted Basis of Medical Equipment or Property Sold
Next, use Worksheet E to figure the total gain or loss on the sale of the medical equipment or property. Worksheet E. Gain or Loss on the Sale of Medical Equipment or Property
If you have a loss, it isn't deductible. If you have a gain, it is includible in your income. The part of the gain that is a recovery of an amount you previously deducted is taxable as ordinary income. Enter it on Form 1040 or 1040-SR. Any part of the gain that is more than the recovery of an amount you previously deducted is taxable as a capital gain. Enter it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040), Capital Gains and Losses. For more information about the recovery of an amount that you claimed as an itemized deduction in an earlier year, see Recoveries in Pub. 525. Damages for Personal InjuriesIf you receive an amount in settlement of a personal injury suit, part of that award may be for medical expenses that you deducted in an earlier year. If it is, you must include that part in your income in the year you receive it to the extent it reduced your taxable income in the earlier year. See What if You Receive Insurance Reimbursement in a Later Year, discussed earlier under How Do You Treat Reimbursements. Example. You sued this year for injuries you suffered in an accident last year. You sought $10,000 for your injuries and didn't itemize your damages. Last year, you paid $500 for medical expenses for your injuries. You deducted those expenses on last year's tax return. This year you settled your lawsuit for $2,000. Your settlement didn't itemize or allocate the damages. The $2,000 is first presumed to be for the medical expenses that you deducted. The $500 is includible in your income this year because you deducted the entire $500 as a medical expense deduction last year. Future medical expenses. If you receive an amount in settlement of a damage suit for personal injuries, part of that award may be for future medical expenses. If it is, you must reduce any future medical expenses for these injuries until the amount you received has been completely used. Example. You were injured in an accident. You sued and sought a judgment of $50,000 for your injuries. You settled the suit for $45,000. The settlement provided that $10,000 of the $45,000 was for future medical expenses for your injuries. You can't include the first $10,000 that you pay for medical expenses for those injuries. Workers' compensation. If you received workers' compensation and you deducted medical expenses related to that injury, you must include the workers' compensation in income up to the amount you deducted. If you received workers' compensation, but didn't deduct medical expenses related to that injury, don't include the workers' compensation in your income. Impairment-Related Work ExpensesIf you are a person with disabilities, you can take a business deduction for expenses that are necessary for you to be able to work. If you take a business deduction for these impairment-related work expenses, they aren't subject to the 7.5% limit that applies to medical expenses. You have a disability if you have:
Impairment-related expenses defined. Impairment-related expenses are those ordinary and necessary business expenses that are:
Where to report. If you are self-employed, deduct the business expenses on the appropriate form (Schedule C, E, or F) used to report your business income and expenses. If you are an employee, complete Form 2106, Employee Business Expenses. Enter on Schedule A (Form 1040) that part of the amount on Form 2106 that is related to your impairment. Example. You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as business expenses. Health Insurance Costs for Self-Employed PersonsIf you were self-employed and had a net profit for the year, you may be able to deduct, as an adjustment to income, amounts paid for medical and qualified long-term care insurance on behalf of yourself, your spouse, your dependents, and your children who were under age 27 at the end of 2021. For this purpose, you were self-employed if you were a general partner (or a limited partner receiving guaranteed payments) or you received wages from an S corporation in which you were more than a 2% shareholder. The insurance plan must be established under your trade or business and the deduction can't be more than your earned income from that trade or business. You can't deduct payments for medical insurance for any month in which you were eligible to participate in a health plan subsidized by your employer, your spouse's employer, or an employer of your dependent, or your child under age 27, at the end of 2021. You can't deduct payments for a qualified long-term care insurance contract for any month in which you were eligible to participate in a long-term care insurance plan subsidized by your employer or your spouse's employer. If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet in the Instructions for Forms 1040 and 1040-SR to figure the amount you can deduct. But if any of the following applies, don't use that worksheet.
If you can't use the worksheet in the Instructions for Forms 1040 and 1040-SR, use the worksheet in Pub. 535, Business Expenses, to figure your deduction. If you were an eligible TAA recipient, ATAA recipient, RTAA recipient, or PBGC payee, see the Instructions for Form 8885 to figure the amount to enter on the worksheet. Use Pub. 974, Premium Tax Credit, instead of the worksheet in the 2021 Instructions for Forms 1040 and 1040-SR if the insurance plan established, or considered to be established, under your business was obtained through the Health Insurance Marketplace and you are claiming the premium tax credit. When figuring the amount you can deduct for insurance premiums, don't include amounts paid for health insurance coverage with retirement plan distributions that were tax free because you are a retired public safety officer. Where to report. You take this deduction on Form 1040 or 1040-SR. If you itemize your deductions and don't claim 100% of your self-employed health insurance costs on Form 1040 or 1040-SR, include any remaining premiums with all other medical expenses on Schedule A (Form 1040) subject to the 7.5% limit. Child under age 27. If the insurance policy covers your nondependent child who was under age 27 at the end of 2021, you can claim the premiums for that coverage on Form 1040 or 1040-SR. If you can't claim 100% of your self-employed health insurance costs on Form 1040 or 1040-SR, any excess amounts attributable to that child aren't eligible to be claimed on Schedule A (Form 1040). Generally, family health insurance premiums don't increase if coverage for an additional child is added. If this is the situation, no allocation would be necessary. If the premiums did increase (such as where coverage was expanded from single to family to add the nondependent child), you can allocate the amount on Form 1040 or 1040-SR to the nondependent child and any excess amounts not attributable to that child would be eligible to be claimed on Schedule A. Example 1. Kate is self-employed in 2021 and has self-only coverage for health insurance. Her premium for that coverage was $5,000 for the year. She changes to family coverage only to add her 26-year-old nondependent child to the plan. Her health insurance premium increases to $10,000 for the year. After completing the Self-Employed Health Insurance Deduction Worksheet in the Instructions for Forms 1040 and 1040-SR, she can only deduct $4,000 on Form 1040 or 1040-SR. The $4,000 is allocable to the nondependent child. On Schedule A, she can only claim the $5,000 allocable to her coverage. She can't claim the $1,000 excess premiums allocable to the nondependent child. Example 2. The facts are the same as in Example 1, except that Kate had family coverage when she added her 26-year-old nondependent child to the policy. There was no increase in the $10,000 premium. In this case, she could claim $4,000 on Form 1040 or 1040-SR and $6,000 on Schedule A. More information. For more information, see Pub. 535. Health Coverage Tax CreditThe health coverage tax credit (HCTC) is a tax credit that pays 72.5% of qualified health insurance premiums for eligible individuals and their families. The HCTC acts as partial reimbursement for premiums paid for qualified health insurance coverage. You must elect the HCTC. Once you make the election to take the HCTC for an eligible coverage month, you can't take the premium tax credit for the same coverage in that coverage month and for all subsequent coverage months during your tax year in which you are eligible to take the HCTC. If you have qualified health insurance that covers anyone besides yourself and your qualifying family member(s), you may not be able to take into account all of your payments. You can't treat an amount as paid for insurance for yourself and qualifying family members unless all of the following requirements are met.
For more information on who is eligible to take the HCTC, which plans are qualified health plans for the HCTC, how to figure your credit if advance payments of the premium tax credit were made, as well as other changes to the HCTC, go to IRS.gov/HCTC. Also, see the Instructions for Form 8885. How To Get Tax HelpIf you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away. Preparing and filing your tax return. After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return. . For 2021, if you received an Economic Impact Payment (EIP), refer to your Notice 1444-C, Your 2021 Economic Impact Payment. If you received Advance Child Tax Credit payments, refer to your Letter 6419..Free options for tax preparation. Go to IRS.gov to see your options for preparing and filing your return online or in your local community, if you qualify, which include the following.
Using online tools to help prepare your return. Go to IRS.gov/Tools for the following.
. Getting answers to your tax questions. On IRS.gov, you can get up-to-date information on current events and changes in tax law. .
. Need someone to prepare your tax return? There are various types of tax return preparers, including tax preparers, enrolled agents, certified public accountants (CPAs), attorneys, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:
Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov. Advance child tax credit payments. From July through December 2021, advance payments were sent automatically to taxpayers with qualifying children who met certain criteria. The advance child tax credit payments were early payments of up to 50% of the estimated child tax credit that taxpayers may properly claim on their 2021 returns. Go to IRS.gov/AdvCTC for more information about these payments and how they can affect your taxes. Coronavirus. Go to IRS.gov/Coronavirus for links to information on the impact of the coronavirus, as well as tax relief available for individuals and families, small and large businesses, and tax-exempt organizations. Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure online W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement. IRS social media. Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site. The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.
Watching IRS videos. The IRS Video portal (IRSVideos.gov) contains video and audio presentations for individuals, small businesses, and tax professionals. Online tax information in other languages. You can find information on IRS.gov/MyLanguage if English isn’t your native language. Free Over-the-Phone Interpreter (OPI) Service. The IRS is committed to serving our multilingual customers by offering OPI services. The OPI service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), other IRS offices, and every VITA/TCE return site. OPI service is accessible in more than 350 languages. Accessibility Helpline available for taxpayers with disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). Getting tax forms and publications. Go to IRS.gov/Forms to view, download, or print all of the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order. Getting tax publications and instructions in eBook format. You can also download and view popular tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks. Note.IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended. Access your online account (individual taxpayers only). Go to IRS.gov/Account to securely access information about your federal tax account.
Using direct deposit. The fastest way to receive a tax refund is to file electronically and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit union that can open an account online. Getting a transcript of your return. The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts. Click on either “Get Transcript Online” or “Get Transcript by Mail” to order a free copy of your transcript. If you prefer, you can order your transcript by calling 800-908-9946. Reporting and resolving your tax-related identity theft issues.
Ways to check on the status of your refund.
Note.The IRS can’t issue refunds before mid-February 2022 for returns that claimed the EIC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits. Making a tax payment. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.
Note.The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, easy, and faster than mailing in a check or money order. What if I can’t pay now? Go to IRS.gov/Payments for more information about your options.
Filing an amended return. You can now file Form 1040-X electronically with tax filing software to amend 2019 or 2020 Forms 1040 and 1040-SR. To do so, you must have e-filed your original 2019 or 2020 return. Amended returns for all prior years must be mailed. Go to IRS.gov/Form1040X for information and updates. Checking the status of your amended return. Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns. Note.It can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks. Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter. You can use Schedule LEP, Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language, when these are available. Once your Schedule LEP is processed, the IRS will determine your translation needs and provide you translations when available. If you have a disability requiring notices in an accessible format, see Form 9000. Contacting your local IRS office. Keep in mind, many questions can be answered on IRS.gov without visiting an IRS TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.” The Taxpayer Advocate Service (TAS) Is Here To Help YouWhat Is TAS?TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. How Can You Learn About Your Taxpayer Rights?The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. What Can TAS Do for You?TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:
How Else Does TAS Help Taxpayers?TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, report it to them at IRS.gov/SAMS. TAS for Tax ProfessionalsTAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice. Low Income Taxpayer Clinics (LITCs)LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee for eligible taxpayers. To find an LITC near you, go to TaxpayerAdvocate.IRS.gov/about-us/Low-Income-Taxpayer-Clinics-LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List. Publication 502 - Additional MaterialIndexAAbortion, AbortionAcupuncture, AcupunctureAdopted child's medical expenses, Adopted child.AGI limitation, , Community property states.Alcoholism, AlcoholismAmbulances, AmbulanceArcher MSAsMedical expenses paid for decedent from, DecedentArtificial limbs, Artificial Limb Artificial teeth, Artificial TeethAspirin, Nonprescription Drugs and MedicinesAssistance (see Tax help)Assisted living homes, Nursing HomeAthletic club dues, Health Club DuesAutomobiles (see Cars)BBaby sitting, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy BabyBandages, BandagesBasisMedical equipment or property (Worksheet D), Worksheet D. Adjusted Basis of Medical Equipment or Property SoldBirth control pills, Birth Control PillsBody scan, Body ScanBraille books and magazines, Braille Books and MagazinesBreast pumps and supplies, Breast Pumps and SuppliesBreast reconstruction surgery, Breast Reconstruction SurgeryCCalculation of deduction, What if You Are Reimbursed for Medical Expenses You Didn't Deduct?Capital expenses, Capital ExpensesImprovements to rented property, Improvements to property rented by a person with a disability.Operation and upkeep, Operation and upkeep.Worksheet A, Capital expense worksheet.Cars, Car Out-of-pocket expenses, Car expenses.Standard medical mileage rates, Car expenses.Child care, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy BabyChildren's medical expensesAdopted child, Adopted child.Dependents, DependentChiropractor, ChiropractorChristian Scientist practitioner, Christian Science PractitionerChronically ill persons, Chronically ill individual. Community property states, Community property states.Computer banks to track medical information, Medical Information PlanContact lenses, Contact LensesControlled substances, Controlled SubstancesCosmetic surgery, Cosmetic SurgeryCrutches, CrutchesDDancing lessons, Dancing LessonsDecedent's medical expenses, Decedent, What if you pay medical expenses of a deceased spouse or dependent?Deductible amount, How Much of the Expenses Can You Deduct?Deductible expenses, Whose Medical Expenses Can You Include?, X-ray Definition of medical expensesDoctor, What Are Medical Expenses?Physician, What Are Medical Expenses?Dental treatment, Dental TreatmentArtificial teeth, Artificial TeethTeeth whitening, Teeth WhiteningDentures, Artificial TeethDependent's medical expensesAdopted child, Adopted child.Multiple support agreement, Support claimed under a multiple support agreement.Qualifying child, DependentQualifying relative, DependentDependentsDisabled dependent care, Disabled Dependent Care Expenses, Dependents with disabilities.Diagnostic devices, Diagnostic DevicesDiaper services, Diaper ServiceDisabilities, persons withDependent care expenses, Disabled Dependent Care Expenses, Dependents with disabilities.Improvements to rented property, Improvements to property rented by a person with a disability.Special education, Special Education Divorced taxpayersMedical expenses of child, Child of divorced or separated parents.Drug addiction, Drug AddictionDrugs (see Medicines)DuesHealth club, Health Club DuesFFertility enhancementEggs, temporary storage of, Fertility EnhancementFertility, Fertility EnhancementIn vitro fertilization, Fertility EnhancementFiguring the deduction, How Do You Figure and Report the Deduction on Your Tax Return?Final return for decedentMedical expenses paid, DecedentFlexible spending arrangement, Flexible Spending ArrangementFood (see Weight-loss programs)Form 1040 or 1040-SRSelf-employed persons, health insurance costs, Health Insurance Costs for Self-Employed PersonsForm 1040, Schedule AImpairment-related work expenses, Where to report.Medical and dental expenses, , What Tax Form Do You Use?Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed PersonsForm 1040, Schedule CImpairment-related work expenses, Where to report.Form 1040, Schedule EImpairment-related work expenses, Where to report.Form 1040, Schedule FImpairment-related work expenses, Where to report.Form 1040-XAmended return, What Expenses Can You Include This Year?Deceased taxpayer, What if the decedent's return had been filed and the medical expenses weren't included?Form 2106Impairment-related work expenses, Where to report.Form 2555Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed PersonsFounder's fee (see Lifetime care, advance payments)Funeral expenses, Funeral ExpensesFuture medical care, Payments for future medical care., Future Medical CareHHairRemoval, Cosmetic SurgeryTransplants, Cosmetic SurgeryWigs, WigHealth club dues, Health Club DuesHealth Coverage Tax Credit, Health Coverage Tax Credit (HCTC)Health coverage tax creditAlternative TAA recipient, Health Coverage Tax CreditChildren of divorced parents, Health Coverage Tax CreditInsurance that covers other individuals, Health Coverage Tax CreditTAA recipient, Health Coverage Tax CreditHealth institutes, Health InstituteHealth insuranceEmployer-sponsored plan, Employer-Sponsored Health Insurance PlanPension Benefit Guaranty Corporation (PBGC) recipient, Health Insurance Costs for Self-Employed PersonsPremiumsDeductible, Insurance PremiumsNondeductible, Insurance Premiums You Can't IncludePaid by employer, Premiums paid by your employer.Paid by employer and you, Premiums paid by you and your employer. Paid by you, Premiums paid by you.Prepaid, Prepaid Insurance PremiumsUnused sick leave used to pay, Unused Sick Leave Used To Pay PremiumsReimbursements (see Reimbursements)Self-employed persons, Health Insurance Costs for Self-Employed PersonsHealth maintenance organizations (HMOs), Health Maintenance Organization (HMO)Health reimbursement arrangements (HRAs), Health reimbursement arrangement (HRA).Health savings accounts (HSAs)Payments from, Health Savings AccountsHearing aids, Hearing AidsHearing-impaired personsGuide dog or other animal for, Guide Dog or Other Service AnimalHMOs (Health maintenance organizations), Health Maintenance Organization (HMO)Home care (see Nursing services)Home improvements (see Capital expenses:)Hospital services, Hospital ServicesHotels, LodgingHousehold help, Household HelpHRAs (Health reimbursement arrangements), Health reimbursement arrangement (HRA).IIllegal operations and treatments, Illegal Operations and TreatmentsIllegal substances, Controlled SubstancesImpairment-related work expenses, Workers' compensation., Impairment-related expenses defined.Reporting of, Where to report.Insulin, Nonprescription Drugs and MedicinesInsurance (see Health insurance)Intellectually and developmentally disabled personsMentally disabled, Intellectually and Developmentally Disabled, Special Home forSpecial homes for, Intellectually and Developmentally Disabled, Special Home forLLaboratory fees, Laboratory FeesLactation expenses (see Breast pumps and supplies)Laser eye surgery, Eye SurgeryLead-based paint removal, Lead-Based Paint RemovalLearning disabilities, Special EducationLegal fees, Legal FeesLessons, dancing and swimming, Dancing LessonsLifetime careAdvance payments for, Lifetime Care—Advance PaymentsLodging, Lodging, Trips(see also Trips)Long-term care, Long-Term CareChronically ill individuals, Chronically ill individual.Maintenance and personal care services, Maintenance and personal care services.Qualified insurance contracts, Qualified Long-Term Care Insurance ContractsQualified services, Qualified Long-Term Care ServicesMMaintenance and personal care services, Maintenance and personal care services.Maternity clothes, Maternity ClothesMeals, Meals, Weight-Loss Program(see also Weight-loss programs)Medical conferences, Medical ConferencesMedical equipment or propertyAdjusted basis (Worksheet D), Worksheet D. Adjusted Basis of Medical Equipment or Property SoldMedical expense records, What Tax Form Do You Use?Medical information plans, Medical Information PlanMedical savings accounts (MSAs), Medical Savings Account (MSA)MedicareMedicare Part A, deductible expense, Medicare Part AMedicare Part B, deductible expense, Medicare Part BMedicare Part D, deductible expense, Medicare Part DMedicines, MedicinesImported, Imported medicines and drugs., Medicines and Drugs From Other CountriesNonprescription drugs and medicines, Nonprescription Drugs and MedicinesMissing children, photographs of in IRS publications, RemindersMultiple support agreement, Support claimed under a multiple support agreement.NNondeductible expenses, What Expenses Aren't Includible?, Weight-Loss ProgramNonprescription drugs and medicines, Nonprescription Drugs and MedicinesNursing homes, Nursing HomeNursing services, Nursing Services, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy BabyChronically ill individuals, Chronically ill individual.Nutritional supplementsNatural medicines, Nutritional SupplementsPParking fees and tolls, Car expenses.Personal injury damages, Damages for Personal InjuriesPersonal use items, Personal Use ItemsPhysical examination, Physical ExaminationPhysical therapy, TherapyPlastic surgery, Cosmetic SurgeryPregnancy test kit, Pregnancy Test KitPremium Tax Credit, Premium Tax CreditPremiums (see Health insurance)Prepaid insurance premiums, Prepaid Insurance PremiumsProsthesis, Artificial LimbPsychiatric care, Psychiatric CarePsychoanalysis, PsychoanalysisPsychologists, Psychologist Publications (see Tax help)RRadial keratotomy, Eye SurgeryRecordkeeping, What Tax Form Do You Use?Rehabilitation facilities, Nursing HomeReimbursements, How Do You Treat Reimbursements?, What if You Are Reimbursed for Medical Expenses You Didn't Deduct?Excess includible in incomeMore than one policy (Worksheet C), More than one policy.One policy (Worksheet B), Worksheet B. Excess Reimbursement Includible in Income When You Have Only One PolicyExcess may be taxable (Figure 1), What if Your Insurance Reimbursement Is More Than Your Medical Expenses?Health Reimbursement Arrangement (HRA), Health reimbursement arrangement (HRA).Insurance, Insurance Reimbursement, What if Your Insurance Reimbursement Is More Than Your Medical Expenses?Medical expenses not deducted, What if You Receive Insurance Reimbursement in a Later Year?More than one policy, More than one policy.Received in later year, What if You Are Reimbursed for Medical Expenses You Didn't Deduct?Rental propertyImprovements to, Improvements to property rented by a person with a disability.ReportingImpairment-related work expenses, Where to report. Medical and dental expenses, What if You Are Reimbursed for Medical Expenses You Didn't Deduct?Medical deduction (see Form 1040, Schedule A)Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed PersonsSSale of medical equipment or property, Sale of Medical Equipment or PropertyAdjusted basis (Worksheet D), Worksheet D. Adjusted Basis of Medical Equipment or Property SoldSchedules (see Form 1040 or 1040-SR)Seeing-eye dogs, Guide Dog or Other Service AnimalSelf-employed personsHealth insurance costs, Health Insurance Costs for Self-Employed PersonsSenior housing, Nursing HomeSeparate returnsCommunity property states, Community property states.Medical and dental expenses, Separate returns.Separated taxpayersMedical expenses of child, Child of divorced or separated parents.Service animals, Guide Dog or Other Service AnimalSick leaveUsed to pay health insurance premiums, Unused Sick Leave Used To Pay PremiumsSpecial education, Special EducationSpouse's medical expenses, SpouseDeceased spouse, What if you pay medical expenses of a deceased spouse or dependent?Sterilization, SterilizationStop-smoking programs, Stop-Smoking ProgramsSurgery (see Operations)Swimming lessons, Dancing LessonsTTables and figuresMedical equipment or propertyAdjusted basis (Worksheet D), Worksheet D. Adjusted Basis of Medical Equipment or Property SoldReimbursements, excess includible in incomeMore than one policy (Worksheet C), More than one policy.One policy (Worksheet B), Worksheet B. Excess Reimbursement Includible in Income When You Have Only One PolicyReimbursements, excess may be taxable (Figure 1), What if Your Insurance Reimbursement Is More Than Your Medical Expenses?Tax help, How To Get Tax HelpTeethArtificial, Artificial TeethDental treatment, Dental TreatmentWhitening, Teeth WhiteningTelephone, TelephoneTelevision, TelevisionTherapy, TherapyTransplants, TransplantsTravel and transportation expenses, TransportationCar expenses, Car expenses.Includible expenses, You can include:, Transportation expenses you can't include.Parking fees and tolls, Car expenses.Trips, TripsTuition, TuitionWWeight-loss programs, Weight-Loss Program, Weight-Loss ProgramWhat's newStandard medical mileage rate, What's NewWheelchairs, WheelchairWigs, WigWork expensesDisabled dependent care, Disabled Dependent Care ExpensesImpairment-related, Impairment-Related Work ExpensesWorkers' compensation, Workers' compensation.WorksheetsCapital expenses (Worksheet A), Capital expense worksheet.Medical equipment or propertyAdjusted basis (Worksheet D), Worksheet D. Adjusted Basis of Medical Equipment or Property SoldReimbursements, excess includible in incomeMore than one policy (Worksheet C), More than one policy.One policy (Worksheet B), Worksheet B. Excess Reimbursement Includible in Income When You Have Only One PolicyPage Last Reviewed or Updated: 13-Jan-2022 What best describes a short term medical expense policy?Short Term Medical is a temporary coverage option, so plans cannot be renewed like permanent insurance. However, when your plan expires, you may apply for another plan if you have not had in total more than 540 days of short–term coverage within the preceding 24–month period. Coverage for unexpected illness and injury.
Which of the following conditions is typical of a major medical policy?Major Medical policies typically contain a deductible and coinsurance. (Correct.) A provision that requires the insured to pay the first portion of covered expenses before Major Medical coverage applies is called an initial deductible.
Which of the following is considered to be the time period after a health policy?Benefit Year or Benefit Period
This is the year or period of time that your insurance coverage starts and stops. A benefit year can start and end at the beginning and end of a calendar year, but it can also vary depending on your plan.
Which of the following does a critical illness plan cover?A critical illness plan is a policy that pays the insured a lump sum following the diagnosis of an illness covered under the plan. Critical-illness plans often cover diseases like cancer, organ transplant, heart attack, stroke, renal failure, and paralysis, among others.
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