Tax Law

Deductions: Itemized Deductions |

Medical Expenses | Requirements for the Deduction * An itemized deduction is allowed for expenses paid for the medical care of the taxpayer, spouse, or a dependent. Child of divorced parents is treated as dependent of both parents for medical deduction.Gross income requirement for the dependency exemption is waived for medical deduction. * The deduction is allowable only for medical expenses actually paid during the year, regardless of when the expenses were incurred or the method of accounting used by the taxpayer. * The expense must not be compensated for by insurance or otherwise. * Only such medical expenses as exceed 7.5 percent of adjusted gross income for the year are deductible. |

Medical Transportation and Lodging | * Mileage - If mileage was primarily for and essential to medical care, the taxpayer may choose between * standard mileage allowance of 23 cents, plus parking and tolls, or * actual expenditures (including depreciation) * Meals - consumed during medical-related transportation are NOT deductible even if the transportation is primarily for and essential to the medical care rendered. |

Medical Care Expenses | * Cost of in-patient (overnight) hospital care, including meals and lodging, is an allowable deduction * Meals consumed by patients during hospital stays are not subject to the 50% reduction. * All medicines and drugs except for insulin require a prescription to be deductible. * Cosmetics and toiletries are not considered medicine and drugs. * Unnecessary cosmetic surgery will not qualify for the medical expense deduction. |

Medical Insurance Premiums | * Medical expense deduction is allowed for medical insurance premiums. * Long term care insurance premiums allowed as medical expense deduction, subject to the 7.5 percent limitation. * In 2012, maximum deduction ranges from: * $350 for taxpayer age 40 or less to...