Use the tax code to make business losses less painful
Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing...
2 min read
Maurice La Verdure
:
May 3, 2023 12:32:40 PM
If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes.
Basic rules and IRS clarifications
You can claim an itemized deduction for qualified medical expenses that exceed 7.5% of your adjusted gross income. You can also take tax-free health savings account (HSA), health care flexible spending account (FSA) or health reimbursement account (HRA) withdrawals to cover qualified medical expenses. However, qualified medical expenses don’t include those for things that are merely beneficial to your general health.
The answers to the IRS FAQs clarify the following points, starting with the ones we think are most interesting.
Count all eligible expenses
If you meet or are close to the threshold to deduct medical expenses, you want to count every one that’s eligible. Be sure to save documentation and we can evaluate expenses when we prepare your tax return.
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