Knowing if your Lasik surgery is tax deductible is just the first question to ask yourself.
There’s quite a bit of complexity when it comes to elective medical procedures, especially with insurance. These operations can often cost a lot out of pocket, so taking advantage of potential savings and recuperation is important.
Lasik surgery is an extremely useful procedure that can eliminate the need for glasses or contacts. This in itself can save quite a bit of money over time, but it may be able to reduce your tax burden as well.
So is Lasik tax deductible?
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The short answer is yes, Lasik Surgery can be used as a write-off on your taxes. The annually published 502 IRS article states:
“You can include in medical expenses the amount you pay for eye surgery to treat defective vision, such as laser eye surgery or radial keratotomy.”
But medical expenses have a built-in threshold that has to be met before it can actually apply. Individuals can only deduct medical expenses that exceed 7.5% of their annual gross income (AFI).
Fortunately, this is cumulative over the year, so once the threshold is reached, anything beyond it can be tax-deductible.
What Other Medical Expenses Can I Deduct on My Taxes?
But it isn’t just the procedure cost you can deduct either. The IRS states that any costs associated with the surgery can be included. This could be prescriptions, insurance premiums, and even transportation costs.
So be sure to track any costs you incur if you plan to write off your Lasik surgery.
The standard deduction for 2020 is $12,400 or double that for married couples. That’s a considerable amount of money that needs to be reached before itemizing can offer benefits.
For tax year 2020, the standard deduction amounts are as follows:
|2020 Standard Deduction and Personal Exemption (Estimate)|
|Filing Status||Deduction Amount|
|Married Filing Jointly||$24,800.00|
|Head of Household||$18,650.00|
|Married Filing Separately||$12,400.00|
If your overall deductions fall beneath the standard deduction then it’s better off just taking it.
However, if you surpass the $12,400 (or $18,650 if you are head of household) then it can certainly be worth itemizing your deductions. But remember, medical expenses can only be written off after they surpass 7.5% of your AGI.
That means if you make $50,000, medical expenses need to exceed $3,750 before they can be used as a deduction. So if your medical expenses amount to $5,000, then you can deduct $1,250 from your taxes.
Remember: Keep track of your expenses and income on a spreadsheet or bookkeeping program such as FreshBooks.
Whether it’s tax-deductible or not, Lasik surgery is expensive. Here are a few tips on how to reduce the costs as much as possible.
It can be hit or miss when it comes to elective procedures and your health insurance. But it doesn’t hurt to check and see if Lasik is fully or partially covered. In some cases, insurers will offer partial coverage up to a certain dollar amount and may reimburse certain expenses.
Track any expenses associated with the surgery itself as this can be added on to the tax-deductible medical expenses. These expenses can include:
- Care costs
3. Get your taxes done by a trusted source
Be sure to choose the best tax preparer or tax software to do your taxes! They will make sure that you take advantage of each tax deductible that is available to you.
So yes, Lasik surgery is tax-deductible as long as your medical expenses exceed the 7.5% AGI threshold. Be sure to keep track of any medical costs throughout the year and add them up.
If your deductions look like they will surpass the standard $12,400 deduction then be prepared to itemize to get your maximum return.
I hope this article helped you gain some control of your tax plan this year. Remember not to stress out. Don’t forget to check out Tax Forms page for any additional online tax checklists and forms you may need this year.
If you enjoyed this article, then you’ll love these:
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Until the next money adventure, take care from The Handy Tax Guy Team!
Disclaimer Statement: All data and information provided on this site is for informational purposes only. The Handy Tax Guy makes no absolute representation to the correctness, mistakes, omissions, delays, appropriateness, or legitimacy of any information on this site. **Note: Each client circumstance will vary on a case by case basis**