My wife and I are both retired, yet we both work and collect Social Security. I purchased supplemental health insurance to help with hospital bills that could happen at any time. I also purchased drug insurance and dental insurance. Can I claim any of these payments?
All of the items mentioned are considered medical insurance premiums, and can be taken as a medical expense if you itemize deductions on Form 1040, Schedule A. Once you tally up all your medical expenses (not just the medical insurance premiums), such as out-of-pocket payments to doctors, dentists, prescriptions, etc., the amount must exceed 10 percent of your adjusted gross income if you are under age 65, or 7.5 percent of your adjusted gross income if you are 65 or older, in order to be counted toward the itemized deductions threshold for the medical expenses category.
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Answered by: Loretta M. Tubiello-Harr, CPA, is a principal with Tubiello-Harr & Associates LLC in Coopersburg, Pa.