The IRS has updated the medical expenses tax deduction for 2023!

The IRS has updated the medical expenses tax deduction for 2023. If you have medical expenses that exceed a certain threshold, you may be able to deduct them from your taxable income. The IRS has updated the medical expenses tax deduction for 2023, and here are some of the changes you need to know.

• - The threshold for deducting medical expenses is now 10% of your adjusted gross income (AGI), up from 7.5% in previous years. This means you can only deduct the amount of medical expenses that exceeds 10% of your AGI.

• - You can deduct medical expenses for yourself, your spouse, and your dependents, as long as they are qualified medical expenses. Qualified medical expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.

• - You can also deduct medical expenses for transportation to and from medical care, health insurance premiums, long-term care services and insurance, and certain equipment and supplies.

• - You cannot deduct medical expenses that are reimbursed by insurance or another source, cosmetic procedures that are not medically necessary, non-prescription drugs (except insulin), or general health items such as vitamins or toothpaste.

To claim the medical expenses tax deduction, you need to itemize your deductions on Schedule A of Form 1040. You also need to keep records of your medical expenses, such as receipts, invoices, or statements from your health care provider. For more information on the medical expenses tax deduction, contact us today to learn more at 512-354-7878.