If the combined expenses exceed 7.5% of their combined adjusted gross income, they can claim the expenses as a deduction. Since the deduction is based on expenses as a percentage of income, splitting income between two individuals and filing separately may yield a greater overall tax reduction.Ĥ) When a family member or caregiver is claiming the care recipient as a dependent, they can combine that individual’s medical and dental expenses with his or her own expenses. For those born after this date, 7.5% needs to be replaced with 10%.ġ) When the care recipient is filing his/her own taxes and their personal annual medical and dental expenses exceed 7.5% of their adjusted gross income.Ģ) When a married couple is filing jointly and their combined medical and dental expenses exceed 7.5% of their combined adjusted gross income.ģ) When a married couple is filing separately. Medical and dental expenses are deductible in each of the following four tax filing scenarios for those born prior to January 2, 1951. This credit is meant for dependent care expenses the primary taxpayer incurs to enable them to work, or look for work, rather than caring for their dependent.
Medical and dental expense deductions should not be confused with Dependent Care Tax Credit. Furthermore, lowering one’s adjusted gross income may help make one eligible for other forms of federal and state assistance. When combined with other options, this might make the difference between being able to afford home care or assisted living. While tax deductions are not a source of funds for eldercare, a reduced tax burden can enable a family to re-allocate resources to help cover the cost of care. Therefore, the amount of tax they owe is also reduced. By deducting these expenses, one’s income is lowered. Those born after Janumay still make a deduction, but their medical and dental expenses must exceed 10% of their adjusted gross income. Therefore, $2,375 can be deducted as a medical and / or dental expense. As an example, say a tax filer has an AGI of $35,000 and has paid $5,000 in medical and / or dental bills for the year. However, the tax filer, or his or her spouse, must have been born before Janu(a minimum of 65 years of age) for this deduction. Medical and dental expenses can be deducted if their total sum exceeds 7.5% of the tax filer’s Adjusted Gross Income (AGI).
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