Did you know that in Arizona, health care expenses can be deducted from your tax return? Were you thinking, like many others, that since total medical expenses are typically lower than the Federal exemption that they do not qualify on your Arizona return? The answer is, health care related expenses can be itemized and qualify for a deduction on your state return if filing in Arizona. Form 140 Schedule A should be used to itemize deductions.
William Perez in Tax Planning Tips for Reducing Taxes Using Medical Expenses teaches us that medical expenses can qualify for various tax breaks:
‘Medical expenses that meet certain qualifications may be eligible for an itemized deduction for medical expenses, or tax-free reimbursement from a flexible spending account, health reimbursement account, or health savings account. Total medical expenses in excess of 7.5% of a person's adjusted gross income can be deducted as part of itemized deductions. Starting with the year 2013, the 7.5% threshold will increase to 10% of adjusted gross income.’
According to Tax Preparer Plus, LLC, a medically related expense will need to involve the diagnosis, cure, treatment, or prevention of a disease or health condition for you, a spouse, or a dependent. Other specialized services such as Acupuncture and massage including Nutritional IV therapy may also be deducted, which would include Chelation and Myers Cocktail treatments. Bandaids, gauze, hydrogen peroxide, aspirin, heating pads, etc., all count as medical expenses if recommended by a health care professional, just as do nutritional supplements. If your Doctor has recommended that you take nutritional supplements, you can itemize these as a medical expense.