Did you know that you might be able to deduct portions of your dental treatment on your federal tax return?
According to the IRS, patients can deduct these types of treatments as medical expenses on their returns if they itemize deductions. However, they can actually only deduct the amount that is greater than 7.5% of their adjusted gross income for 2018. In 2019, they can only deduct these expenses if they are greater than 10% of adjusted gross income.
Taxes and medical expenses can be complicated issues for the majority of the population. That’s why we asked a Certified Public Accountant to answer some common questions for our patients.
Q: Do you see clients deducting dental expenses like Implant Anchored Dentures on their taxes?
Q: For people who don’t understand, what is the difference between doing a normal return and an itemized return?
A: Effective in 2018, you are permitted to itemize your deductions if they exceed $12,000 for single individuals and $24,000 for married individuals. The IRS says that “you should itemize deductions if your allowable itemized deductions are greater than your standard deduction or if you must itemize deductions because you can’t use the standard deduction.”
Q: Is it more trouble than it’s worth to try to deduct treatment?
A: You should always try to minimize your income tax by adding up all your expenditures that qualify as itemized deductions and see if they exceed $12,000 if you file single or $24,000 if you file married.
Q: If people are considering trying to deduct their care, would you recommend they see a CPA or is it easy to do yourself?
A: It is always advisable to seek counsel from a competent tax advisor.
Q: If you deduct your dental procedure, does that help with other personal or family dental or medical procedures done that same year?
A: Your dental procedure would be added to other qualifying medical expenditures incurred during the same year.
Q: Are there any future tax changes you foresee that will impact this deduction?
A: The standard deduction amounts, $12,000 for single filers and $24,000 for married filers will increase each year based upon a Consumer Price Index (CPI) after 2018 and will end after December 31, 2025, unless made permanent by Congress.
A Note on Taxes: Discussion of possible tax treatment of dental or medical treatments that appear in this writing do not constitute financial or tax advice, and you should not rely upon those representations. Rather, we suggest that you consult with your tax, legal, and investment advisors.