Location:TAXES - INCOME;
INCOME TAX DEDUCTIONS FOR MEDICAL EXPENSES IN SELECT STATES |
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By: Julia Singer Bansal, Associate Analyst |
ISSUE
Do California, Connecticut, Florida, Massachusetts, New York, and North Carolina have state income tax deductions for medical expenses and, if so, what are they?
MEDICAL EXPENSE DEDUCTIONS
Four of the six states allow a deduction for qualified medical expenses (California, Massachusetts, New York, and North Carolina), one does not allow a deduction (Connecticut), and one does not have a state income tax (Florida). As it shows, all four states either match or base their deductions on the federal deduction for medical expenses.
Generally, when calculating federal taxable income, taxpayers may deduct eligible, unreimbursed medical and dental expenses that exceed 10% of their adjusted gross income (AGI), or 7.5% of AGI if the taxpayer or his or her spouse is 65 or older. The 7.5% threshold for seniors rises to 10% after December 31, 2016 (IRS Publication 502).
Table 1 shows the medical expense deduction the four states allowed for the 2015 tax year.
Table 1: Medical Expense Deductions in Select States
State | Medical Expense Deduction |
California | Expenses that exceed 7.5% of federal AGI |
Massachusetts | Same as federal |
New York | Same as federal except one must subtract amount paid for long-term care insurance premiums from medical expense total |
North Carolina | Same as federal |
Source: States' 2015 tax form instructions
JSB:cmg
FAQs
Medical Expense Deduction
On Form 1040, medical and dental expenses are deducted on Schedule A, Itemized Deductions. You can deduct only the amount of your medical and dental expenses that is more than 7.5 percent of your adjusted gross income shown on Form 1040, line 38.
Is it worth claiming medical expenses on taxes? ›
Normally, you should only claim the medical expenses deduction if your itemized deductions are greater than your Standard Deduction (TurboTax can also do this calculation for you). If you elect to itemize, you must use IRS Form 1040 to file your taxes and attach Schedule A.
Are medical expenses tax deductible for retirees? ›
Medical and Dental Expenses
Fortunately, some of these expenses are deductible if you itemize your personal deductions. These include health insurance premiums (including Medicare premiums), long-term care insurance premiums, prescription drugs, nursing home care, and most other out-of-pocket healthcare expenses.
What proof do I need to deduct medical expenses? ›
You should also keep a statement or itemized invoice showing: What medical care was received. Who received the care. The nature and purpose of any medical expenses.
Which expenses do not qualify for a medical expense deduction? ›
Nondeductible expenses include:
- Cosmetic surgery not related to any of these: Congenital abnormality. Accident. ...
- Medicare tax on wages and tips paid as part of the self-employment tax or household employment taxes.
- Nursing care for a healthy baby.
- Usually, drugs not approved by the FDA.
- Funeral, burial, or cremation costs.
Deductible medical expenses may include but aren't limited to the following: Amounts paid of fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners.
What is the extra standard deduction for seniors over 65? ›
Additional Standard Deduction for People Over 65
| Filing Status | Taxpayer Is: | Additional Standard Deduction 2024 (Per Person) |
|---|
| Single or Head of Household | Blind | $1,950 |
| Single or Head of Household | 65 or older | $1,950 |
| Single or Head of Household | Blind AND 65 or older | $3,900 |
3 more rowsMar 11, 2024
Medical treatments such as surgeries and preventative care are tax-deductible. Prescription medications and necessary items such as glasses and hearing aids are also tax-deductible, and you can even deduct travel expenses such as parking fees, bus fare and gas mileage on your car.
Is homeowners insurance tax deductible? ›
Some taxpayers have asked if homeowner's insurance is tax deductible. Here's the skinny: You can only deduct homeowner's insurance premiums paid on rental properties. Homeowner's insurance is never tax deductible your main home.
What items are no longer tax deductible? ›
Tax Preparation Fees.
These include the cost of tax preparation software, hiring a tax professional, or buying tax publications. Also gone are deductions for electronic filing fees and fees you pay to fight the IRS, including attorney fees, accounting fees, or fees you pay to contest a ruling or to claim a refund.
If you pay for health insurance before taxes are taken out of your check, you can't deduct your health insurance premiums. If you pay for health insurance after taxes are taken out of your paycheck, you might qualify for the medical expense deduction.
At what age is Social Security no longer taxed? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
At what age do seniors stop paying federal taxes? ›
At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes.
Do seniors over 70 need to do federal tax returns every year? ›
If Social Security is your sole source of income, then you don't need to file a tax return. However, if you have other income, you may be required to file a tax return depending on the amount of other income.
How much does the IRS allow for medical expenses? ›
You can only deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI), found on line 11 of your 2023 Form 1040.
What is the standard deduction for medical expenses on income tax? ›
Medical and Dental Expenses
| Standard Deductions for 2022 and 2023 |
|---|
| Filing Status | 2022 Standard Deduction | 2023 Standard Deduction |
|---|
| Single | $12,950 | $13,850 |
| Married filing separately | $12,950 | $13,850 |
| Head of household | $19,400 | $20,800 |
2 more rowsWhat does the IRS allow you to deduct (or “write off”) without receipts?
- Self-employment taxes. ...
- Home office expenses. ...
- Self-employed health insurance premiums. ...
- Self-employed retirement plan contributions. ...
- Vehicle expenses. ...
- Cell phone expenses.
