Financial Friday: Medical Deductions for 2009 Taxes

Medical Deductions for 2009 Taxes by Alice Shaffer

In 2009, I had the privilege I suppose you could say of having to have several medical issues dealt with and paid for.

I had several cavities filled and an inlay done. These along with my regular appointments was close to $1800. I was also tested for Sleep Apnea. I was diagnosed with a mild Sleep Apnea. This required two sleep studies. I also had to purchase the machine and CPAP mask via my health insurance. This was close to $1000. Those two medical groups had $2800 worth of medical deductions for my 2009 taxes.

I have always heard you could deduct medical stuff on your taxes by it had to be 7.5% of your AGI (Adjusted Gross Income). I never had anything major that was close to the 7.5%. Somehow 2009 was the lucky year for me because along with those Dental and Medical Expenses above and some others I have somehow hit the 7.5% number.

To find out what qualifies as Medical and Dental Expenses you can visit the IRS website and find Publication 502: Medical and Dental Expenses. It was a very easy read. It goes through the many different items that are and are not covered. I am happy to read that my new glasses I had to get last January are covered as they are medically necessary.

Take a look this weekend while you are potentially snowed in (at least here in the DC area) and find your receipts for this year's Medical and Dental Expenses to see if you qualify.

Now you might wander what to do with the extra money you get from these deductions. Open up an ING account or even a SmartyPig account and put the money in there for a medical savings account for 2010.