To deduct unreimbursed, out-of-pocket medical, dental, and vision costs on your federal return:
- You must take the itemized deduction;
- The expenses for you, your jointly-filing spouse, and your dependent(s) must exceed 7.5% of your adjusted gross income (AGI); and
- Only the portion above and beyond 7.5% of your AGI is deductible
For example, if your AGI happens to be $100,000, you can deduct the portion of your expenses exceeding 7.5% of your AGI ($7,500). If your total expenses for the year came in at $6,000, you wouldn't be able to deduct any of it, but if they were $10,000 you could deduct the portion over and beyond $7,500, which would be $2,500 – provided you're itemizing, of course.
That said, go ahead and enter all of your out-of-pocket expenses, even if you don't think they qualify as a deduction. Some states will let you deduct them on your state return even if you couldn't deduct them on your federal return. We'll figure that out for you.
