What You Need to Know about Deducting Our Medical Products on Your Taxes
If you have a medical condition that requires ongoing treatment, the accumulating expenses can be a difficult burden to bear. However, for certain situations, the IRS offers a deduction for medical expenses in order to lessen the burden of high medical bills. So, you may be wondering whether or not the items you purchase from us at Medical Xpress are deductible on your tax return. This article will give you a brief overview on which purchases may qualify; however, it is not to be viewed as tax advice, and we strongly recommend that you work with a reputable CPA if you wish to deduct any medical expenses.
Exceeding the Expenses Threshold
The IRS deduction for medical expenses is intended to be used by taxpayers with extremely high medical bills, so your medical expenses must exceed a certain percentage of your adjusted gross income (AGI) before you can begin deducting anything. Your AGI is your total taxable income, minus adjustments, which can include IRA contributions, deductions, student loan interest, and certain other expenses. Speak to a CPA if you’re not certain what your AGI is.
For 2018, your total medical expenses must exceed 7.5% of your AGI. So, let’s say you calculate your AGI to be $50,000. After adding up your qualifying medical expenses (more on that later), you calculate that you’ve spent $7,000 on medical bills and equipment this year. First, multiply $50,000 by 0.075 to find out what 7.5% of your income is. In this case, it will be $3,750. Subtract this amount from your total medical expenses ($7,000). This tells you that you can deduct $3,250 of your 2018 medical expenses on your tax return.
Please be aware that in 2019, your medical expenses will have to exceed 10% of your AGI to be deductible.
Is Our Equipment Deductible?
Now that you know how to determine if you qualify to deduct your expenses, let’s talk about what kinds of medical expenses are actually deductible—and, more specifically, whether or not your purchases from Medical Xpress can be included. The IRS allows the following types of medical expenses to be included in your total medical expenses for the year, and to be deducted on your return:
-Preventative care (such as annual checkups)
-Treatment or surgeries
-Visits to psychologists and psychiatrists
-Travel expenses required to receive treatment (mileage on car, parking fees, plane fare, etc.)
This last category is the area we’d like to examine further, as it is where our equipment would fall. If you make a purchase from Medical Xpress without a prescription, it would not be considered an allowable medical expense. However, if you have a prescription from your doctor that states your condition requires this equipment, then you should be able to include it when calculating your deductible medical expenses. (Again, please work with a CPA when preparing your tax return to verify the deductibility of each of your medical purchases.)
We carry many different kinds of medical equipment for which you can receive a prescription from your doctor, including CPAP devices, oral appliances, mobility aids, and more. If you feel that you need any of the equipment that we carry in order to treat your medical condition, speak to your doctor about getting a prescription for it before making your purchase, if you wish to deduct the equipment on your tax return.
What’s Not Deductible?
There are many kinds of medical expenses that you cannot include when calculating your total medical costs for the year, and which cannot be deducted on your return. These include:
-Expenses for cosmetic procedures
-Non-prescription drugs (except insulin)
-Health club dues
-Non-prescription nicotine products
-Equipment for which you have no prescription
-Wound care products
In terms of the equipment and products we carry here at Medical Xpress, their deductibility generally comes down to whether or not you’ve received a prescription for the items. If you have, then you should be able to deduct the products on your return. If not, then you probably can’t. Once again, this article is not to be viewed as tax advice, and we strongly recommend that you consult with a CPA if you’re trying to deduct medical expenses on your return.
However, if you have any questions about our products and medical equipment, please feel free to reach out to us or visit one of our many Texas locations and speak to a representative.