I received papers from my Dentist Insurance and on it states it is not a bill but says Retain for Tax Purposes. What and why is this paper for?

[ShawnaD · Accepted solution]

This information can be used if you itemize deductions and claim medical expenses on your tax return. The IRS allows you to deduct preventative care, treatment, surgeries and dental and vision care as qualifying medical expenses. You can deduct qualified medical expenses that exceed 7.5% of your adjusted gross income for 2017 and 2018.

• For example, if you have a modified adjusted gross income of $45,000 and $5,475 of medical expenses, you would multiply $45,000 by 0.075 (7.5 percent) to find that only expenses exceeding $3,375 can be deducted. This leaves you with a medical expense deduction of $2,100 (5,475 - 3,375).

For more information about the medical expense deduction, please see this link.