Rules for Deducting Medical Expenses for Income Taxes 2011, 2012

The rules for deducting medical expenses on your tax return are similar to previous years with a couple of small changes. You may take a deduction for medical expenses if you incurred them yourself, or by a spouse or dependent.

For medical expenses of a dependent, the person need only have been a dependent at the time the services were incurred, and not necessarily for the entire tax year. Expenses incurred for a taxpayer, spouse or dependent who died during the tax year are deductible as long as they are paid within one year after the person’s death.

Deductible expenses cover costs of diagnosis, cure, mitigation, treatment, or prevention of disease, relating to any part or function of the body. These include the costs of equipment, supplies, and diagnostic devices. Dental expenses are included as well.

Also included are premiums paid for insurance that covers medical care, and transportation to get medical care. Furthermore, amounts paid for qualified long-term care services and amounts paid for any qualified long-term care insurance contract are deductible up to limits defined in the tax code and regulations.

The standard mileage rate allowed for use of a vehicle for medical reasons is presently set at 20 cents per mile reflecting the increase in gas prices over the past several years.

Also, for retired public safety officers only, there are new limits on deductions for health insurance premiums paid after retirement.

Rules relating to the calculation and limitation on expenses, as well as lists of items that may be included as medical expenses and those that may not – can be found in IRS Publication 502, “Medical and Dental Expenses.”

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