Tax Deductions for Medical Expenses – Save More on Dental Care Abroad
Tax deductions for medical expenses allow patients to claim tax relief on expenses for medical and dental costs providing they meet a minimum threshold.
The good news is that tax relief for dental care costs is also included. For dental patients choosing to visit a dentist in Costa Rica, Mexico, or anywhere else for that matter, tax free allowances could reduce the costs of their dental treatment still further.
With tax returns due imminently, here’s a few pointers when calculating and claiming your tax deductions.
Claim Tax Deductions for Medical Expenses on expenditure above 7.5% of your AGI
Ultimately, for the 2012 tax year you are eligible to deduct any health care expenses which are equivalent to, or greater than, 7.5% of your adjusted gross income (AGI). If your expenditure is less than this you will not be able to claim it as tax deductible. However, there are a few perfectly legitimate ways in which to maximize your expenditure.
Qualifying expenses include your spouses and your dependents, as well as your own health care costs. It is not hard to see how these aggregated expenses can soon mount up. Furthermore, although it is generally advised to spread the cost of major treatments over a number of years, it may be more prudent from a tax relief perspective to do it all in one year. For patients having major dental work this is something to bear in mind.
Dental patients who go abroad for their treatment save even more
The IRS lists a comprehensive range of qualifying dental and medical conditions where tax deductions for medical expenses are allowable. These are updated regularly, but eligible claims may also include the costs of diagnosing, preventing disease, and prescription drug as well as the actual treatment costs.
However, more surprising and less well known is that travel and accommodation charges may be included as a qualifying expense – provided they are incurred primarily as a result of essential dental care. For patients traveling to other countries for dental treatment this could amount to a huge reduction on overall expenditure.
So, visiting a dentist in Costa Rica could not only save you up to 70% on comparable costs at home, but also reduce your tax bill. Now that is something to smile about.
Further information and advice regarding tax reductions for medical expenses is available from the IRS, or from your accountant.
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