Now that it’s a new year, you may be thinking ahead to tax season and whether or not you can deduct dental work. Here’s some basic information on what you need to know to file this year if you had dental work in 2018.
The Internal Revenue Service allows for deductions of medical and dental expenses, but there are stipulations. First, you must file an itemized tax return. You’re only allowed to claim dental expenses that are unreimbursed, and exceed 7.5 percent of your adjusted gross income. For example, if your annual income is $100,000, the first $7,500 of your dental expenses cannot be deducted. However, all medical and dental expenses that exceed that amount can be. All expenses must be incurred by you or your dependents.
You cannot deduct any medical or dental expenses that were reimbursed by your insurance or employer. Nonprescription medication is not tax deductible. You cannot deduct expenses that were funded through a Health Savings Account.
Keep in mind that after you’ve met the 7.5 percent of your AGI with medical and dental expenses, that any amount exceeding is deductible. So as this year proceeds, if you find yourself needing to have many procedures or treatments done, you should take advantage of tax deductions by scheduling necessary appointments thereafter. This way you can get necessary care out of the way before the start of the new year and deduct exceeding expenses.
Although dental work can be costly, we are always looking for ways to help make it more affordable for our patients, with care plans and informative posts like this one. If you have any questions, our billing department is happy to answer them. We are here to talk to you about your oral health or schedule appointments at any time.