When medical issues arise, costs can be extreme. As a result, many people look for ways to offset exorbitant medical expenses for serious illnesses and injuries by making the right, strategic deductions from their taxes. The following are a few useful financial planning tips to help you lower your tax burden after receiving medical treatment. 

Why Itemizing Your Deductions Is Important

When it comes to tax deductions, you can choose standard deductions or itemized ones. While standard deductions are more simple, making them attractive to many people, they don’t save you money on qualifying medical costs. You can deduct these costs when you itemize. You may be eligible if your total medical costs for the calendar exceed 7.5% of your adjusted gross income, which is your pre-tax income. 

Understanding Which Medical Costs Qualify for Deductions

According to the IRS, the expense needs to relate to a procedure intended to diagnose, cure, treat, or prevent a medical issue. This includes items like prescription medications, diagnostic tests, long-term care services, hospitalizations, medical supplies, glasses or contact lenses, and programs to help you stop smoking. 

Costs That Won’t Qualify

Over-the-counter medications, such as pain relievers, vitamins, and supplements usually can’t be deducted from taxes, and neither can any elective cosmetic procedures unless they’re being used to address a deformity. In most cases, premiums for employer-provided health plans are also not able to be deducted. If you have questions about your tax return, consult with a financial planning specialist for more detailed information.  

If you have financial planning questions related to taxes or another issue, Hill & Associates CPAs are here to help. Since 1993, these certified public accountants have helped people in Lincoln, NE, address a variety of financial issues. They’re equipped to represent you in the event of an audit, which is a great relief to taxpayers. They also provide financial planning assistance for retirement, life insurance policies, and other estate planning vehicles. Schedule a financial planning session today by calling (402) 489-9300. You can also visit the website to request a quote.