The IRS allows you to deduct qualified medical expenses that exceed 7.5 percent of your adjusted gross income. It may be difficult to spend past that threshold, but you shouldn't overlook all possible expenses.
If your tax home is Arizona and you have medical expenses, Arizona allows 100 percent of the medical expenses when you itemize your deductions. You may have enough to itemize for Arizona even if you utilize the standard deduction for federal tax purposes.
All qualified medical expenses paid by you for you and your dependents may be deducted.
- mileage for all medical related travel, automobile expenses
- medical insurance premiums that are not from pretax payroll deductions
- long-term care insurance premiums
- nursing services
- retirement home
- doctor visits, hospital, urgent and emergency room expenses
- ambulance services
- dental, vision and hearing treatments, contact lenses and eye glasses labs, tests, diagnostics not covered by insurance
- prescription drugs, does not include over-the-counter medications; medical equipment: crutches, elastic stockings, handrails
- oxygen and oxygen equipment
- hearing aids, artificial teeth or limbs
- drug or alcohol therapy centers
- school for mentally or physically handicapped
- guide for the blind, Braille books and magazines
- birth control pills
- operations affecting childbearing
Medical Savings Accounts: health savings accounts and health reimbursement accounts, both the income and the related qualifying medical expenses, are normally accounted for as an adjustment to gross income.