Dental Expenses - Some Credit, Some Out of Pocket

[kyuuichan]

Hello, 

2020 was a terrible year for me when it came to dental expenses. I had multiple root canals, none of which were covered by dental insurance. I read that I could maybe claim dental expenses on my tax return. So. 

My question: I spent somewhere in the neighborhood of $6,000 on dental expenses. Some of that I paid out of pocket ($1,700), the rest went onto my CareCredit card (medical credit card). Can I claim the full $6k as medical expenses? Or only the $1700?

Thank you for your time, 

Laura

[xmasbaby0]

You can enter the out of pocket and the amount you put on Care Credit, but not any part of the expense that was covered by insurance,

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 2020—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