Deductible Medical Expenses


We’re just a month away from this year’s tax deadline, which means there’s never been a more apt time to look into the topic of deductible medical expenses.

Unfortunately, many U.S. citizens shun away from filling in an itemized return, listing all their medical costs due to the perceived time it would take to fill in. It’s one of the reasons why 2.2 million residents are paid a smaller tax rebate than what they’re due, according to data from the U.S. Government Accountability Office.

To be eligible for the scheme, a person has to be paying for his or her own care or the care of a loved one. They also have to have spent more than 10% of their gross annual income on medical related items before they become eligible to receive a rebate on the sales tax of any items brought thereafter.

Currently, California sales tax, which stands between 7.25% and 9.75%, is one of the highest in the country, so the amount of any rebate can run into the thousands, depending on the amount spent on medical care over the course of the last 12 months.

To give you some indication as to a number of medical related items you could potentially claim under the scheme, we have jotted down a list of some of the most commonly found items, below:

  • Bandages
  • Artificial limbs
  • Hearing aids
  • Wigs
  • Dentures
  • Acupuncture treatment
  • Glasses
  • Medication
  • Cost of transportation to get to a medical appointment
  • Any renovations to make a property more senior friendly
  • Many more

A full list can be found on the Internal Revenue Service’s website or by visiting your local certified public accountant.

Don’t Overpay if You Don’t Need to!

As a provider of in-home care in San Mateo, we can’t wish to make it any clearer: home care is something that can be claimed under the scheme. As you can imagine, over the course of a few years, this can substantially reduce the costs of your or a loved one’s care, making it much more affordable for those on a lower income.

Learn More

The U.S. tax system is undoubtedly complicated, but once you’ve got your head around the basics, you should be able to fill in an itemized return by yourself without much problem. Just remember, keep hold of your receipts and remember you can also use an online bank statement as a proof of purchase.

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