Medical expenses are defined as any costs related to diagnosing, curing, mitigating, treating, or preventing disease. These services can affect any functionality of the body. Expenses also include monies paid to doctors, dentists, surgeons, and other medical staff who provided legal medical care, as well as the cost of any supplies, equipment, or devices necessary to diagnose or treat.
If you want to deduct medical expenses on your tax return, you should know that such expenses must be incurred as a method of treatment or prevention for a physical or mental illness. You cannot deduct expenses that result from general health benefits, such as vitamins or stress-relieving vacations.
Medical expenses include:
- insurance premiums
- Transportation costs for medical care
- Long term care expenses paid to qualified services
- A portion of money paid to eligible long-term care insurance
You can't include expense which were reimbursed or paid by insurance companies or other third parties, no matter whether the payment was made to you directly, or to the service provider. You are only able to deduct expenses that you actually paid this year, and it doesn't matter when the service was performed. The date of payment for expenses paid by check is considered as the day when the check is mailed or delivered. Similarly, a payment online or by phone makes the payment date the one which your bank statement posts. If you charge expenses on your credit card, the year in which the charges are made, not paid, is the year the expenses can be deducted.
Filing Form 1040X, Amended U.S Individual income Tax Return is the only way you claim expenses for previous years. You should file for the year that the expense was occurred and overlooked. amended returns are typically due either 3 years from the filing date of the return, or 2 years from the payment of due taxes, whichever is later. You shouldn't include previous year's expenses on your current return.