Medical and Dental Expenses
You can deduct the amount of medical and dental expenses you had during the year that were not reimbursed by insurance. You can also deduct the amount of health insurance premiums you paid out of pocket -- that is, not including amounts paid by your employer, or paid with pre-tax dollars through withholding from your paycheck.
However, your medical and dental expense deduction is extremely limited in that only the portion that exceeds 7.5 percent of your adjusted gross income (as shown on Line 37 of your Form 1040) is deductible. For that reason, generally only those with severe chronic or catastrophic medical problems or those who must pay for their own health insurance will benefit from this deduction.
 |
Save Money
For self-employed people in 2003 and beyond, 100 percent of health insurance premiums for themselves, their spouse, and dependents are deductible directly on the front of Form 1040 (Line 29), rather than on Schedule A. You're eligible to claim this deduction for any months that you were not covered or eligible to be covered under an employer's plan for yourself or your spouse.
|
|
For more details on the medical expense deduction:
|
|
