J.K. Lasser's Your Income Tax 2015: For Preparing Your 2014 Tax Return

Chapter 17Medical and Dental Expense Deductions

If you itemize and have high unreimbursed medical expenses, you may be able to deduct some of your expenses, but only if they exceed a substantial income floor. If you are under age 65, your unreimbursed costs must exceed 10% of your adjusted gross income; the expenses up to 10% of AGI are not deductible. If you are at least age 65, the floor is 7.5% of AGI (17.1).

A different rule applies if you are self employed and paid health insurance premiums. As a self-employed person, you do not have to itemize your premiums; you can claim 100% of the premiums as an above-the-line deduction directly from gross income (12.2).

Carefully review the list of deductible expenses in this chapter so that you do not overlook any deductible expenses. Include payments of doctors’ fees, health-care premiums, prescription medicines, travel costs for obtaining medical care, and eligible home improvements.

If you are married, both you and your spouse work, and one of you has substantial medical expenses, filing separate returns may result in a lower overall tax.

Qualifying long-term-care expenses may be treated as medical expenses subject to the 10%/7.5% of AGI floor, including a specified deductible amount of premiums paid for a qualifying long-term-care contract (17.15).

Deductible contributions to health savings accounts (HSAs) and Archer MSAs may be available to individuals covered by high deductible health plans; see Chapters 12 and 41.

Deductible ...