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Level 1

Solved

Should I itemize my therapy bills as they are an out of pocket expense?

Forum|Forum|5 years ago
February 28, 2021
3 replies
16 views

My therapist is out of network therefore it has become an out of pocket expense.

I have been provided my billing for the year 2020 when my therapist left my previous network to present. I am confused concerning what is an itemized deduction in terms of medical expenses.

TurboTax Deluxe Online

Best answer by KathrynG3

Out of pocket expenses are deductible as an itemized deduction, but there are limits. Enter in the full amounts of your out of pocket expenses and answer the questions in TurboTax.

If itemizing deductions is best for you, TurboTax will let you know.

For more information, see: Where do I enter my medical expenses?

What kinds of medical expenses are deductible?

Level 15

Add the total amount of medical payments to your other medical expenses if you itemize. You can only deduct total medical expenses greater than 7.5 percent of your AGI.

KathrynG3Answer

Level 14

Out of pocket expenses are deductible as an itemized deduction, but there are limits. Enter in the full amounts of your out of pocket expenses and answer the questions in TurboTax.

If itemizing deductions is best for you, TurboTax will let you know.

For more information, see: Where do I enter my medical expenses?

What kinds of medical expenses are deductible?

Level 15

the amounts you paid to your therapist in 2020 is a medical expense. that expense + all your other medical expenses are reduced by 7.5% of your adjusted gross income. any remaining medical expenses + all your other allowable itemized deductions must exceed your standard deduction for there to be a benefit. however, some states due allow for itemization when that produces a lower state tax. so it is possible to have the standard deduction for federal and itemized deductions for state.

Mike9241