tax deductions for medical costs. in USA?
April 17th, 2010got no insurance. spent about 2500 $ on medical bills this year, and was told i could use it as a tax deduction, in USA. any idea on how to do that.
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File Form 1040- Schedule A. But there are limitations such as 7 1/2 % of your Adjusted Gross Income. After looking at Schedule A see what your total itemized deduction amount to. Compare that to the standard deduction amount for the year. Deduct the larger of the two.
Medical deduction is itemized deduction. You will take deduction only if your itemized deductions are more than your standard deduction.. Read about medical expense deduction: http://taxipay.blogspot.com/2008/05/itemized-deductions.html
You also have to be a US citizen or resident alien filing a 1040 tax return.
PS, since nobody on the boards seems to know what the 1040NR looks like–while there is a schedule A on the 1040NR, it doesn’t have the same lines as a US 1040. Unlike the US 1040, the 1040NR does not allow you to deduct anything for medical expenses, nor mortgage interest nor property taxes. This usually upsets a non-resident alien who thought they could because helpful US taxpayers said they could.
Either (a) file a paper Form 1040 (or 1040-NR if not a resident of the U.S., although VB’s answer indicates that would make you ineligible; I am not sure) and a Schedule A, or (b) file an electronic return and itemize deductions.
In either case, if this is your only tax deduction, it will probably not benefit you, because the standard deduction for persons who do not itemize or file Schedule A is usually larger.
Maybe. If your total medical expenses are over 7.5% of your income, you can deduct the amount that’s over the 7.5%, if you have enough other deductions to itemize.
Due to those limitations, most people aren’t able to deduct medical bills. If your income is greater than around $33,350, you won’t be able to deduct any of the bills, and if you take a standard deduction, you won’t be able to deduct the medical bills.
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