Add medical category for deduction

[krstarnes]

I using schedule C but itemizing my medical expenses. How do I add Medical/Dental to the deduction category list? It isn't on here as an option thus I need to create it.

[xmasbaby0]

You *might*  be able to enter information regarding health insurance on your Schedule C if you are self-employed and putting your business expenses on Schedule C.    Aside from that, medical expenses/dental expenses are itemized deductions that go on Schedule A.    If you have enough itemized deductions to exceed your standard deduction, the software will use your itemized deductions.   Do not confuse business expenses that go on Schedule C with itemized deductions that go on Schedule A.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the tax laws that have been in effect since 2018, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2024—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY            $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

[rjs]

Medical expenses are a personal itemized deduction, not a business expense. Medical expenses go on Schedule A, not Schedule C. Go to Federal Taxes > Deductions & Credits > Medical Expenses.

Only medical expenses in excess of 7.5% of your Adjusted Gross Income (AGI) are deductible. (Enter the full amount that you paid in TurboTax. TurboTax will subtract 7.5% of your AGI.) In addition, medical expenses are an itemized deduction. They will not reduce your tax or increase your refund unless your total itemized deductions are more than your standard deduction.

[VolvoGirl]

You can only add insurance towards your business.   I guess that could include dental insurance in addition to Medical insurance.   Or are you asking about medical you pay for your employees?   

For your own health insurance you need a Net Profit of Schedule C .  And it does not go directly on Schedule C so it won’t reduce your Schedule C profit or the self employment tax.

If your health ins exceeds your net self-employment income it gets split. An amount equal to your net self-employment income goes on Form 1040 Schedule 1 line 17 (to 1040 line 10) and the remainder gets added in to medical expenses on Schedule A.

Where to enter Self Employed Health Ins.  (For Online you need the Premium version).

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-health-insurance-premi...

[Opus 17]

Personal itemized deductions (medical expenses, mortgage interest, gifts to charity) are reported on Schedule A.  Schedule C is only for ordinary and necessary business expenses.  They are separate.