Are medications tax deductible?
March 16, 2005
Date: 22 Feb 2005
Your page is great. Keep adding the questions people ask, even the dumb ones. They are not dumb to some people.
Are medications tax deductible? Is there a minimum, or is it even worth the trouble?
Date: 04 Mar 2005
The cost of prescription medications is deductible as a medical expense on Schedule A. See the instructions for Schedule A. 7.5% of adjusted gross income is subtracted from medical expenses and the excess is an itemized deduction. Many people find it hard to deduct their medical expenses because of the 7.5% "floor".
As an alternative, find out if your employer offers a salary reduction plan or health savings arrangement. With these plans, you can put aside funds on a pre-tax basis to pay medical expenses, including medications.
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