Tax Q&A: Deducting medical costs for an injury

With the April 15 tax deadline fast approaching, you probably have questions. Fortunately, we have answers. Every day until April 15, members of the American Institute of Certified Public Accountants have agreed to answer selected tax questions from USA TODAY readers. Submit your questions to jwaggoner@usatoday.com.

Q: I get home healthcare for a service-related injury. Can I deduct my out-of-pocket home healthcare expenses that are not covered by the Veteran's Administration? I get a VA disability payment each month, also. Must that payment be exhausted before I may deduct excess payments from my 1040?

A: First of all, thank you for your service to our nation!

Your out-of-pocket costs for home healthcare are considered medical expenses, so they may be deductible on your Schedule A — it all depends on the total amount compared to your adjusted gross income (AGI).

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The fact that you receive disability does not change the destructibility of the expenses.

Any medical costs you incur that aren't covered by insurance, including co-pays, are deductible, but they must exceed 10% of your AGI (7.5% if you're over age 65), and then you also need to itemize your deductions, rather than use the standard deduction.

If you prepare your own taxes using an online program, be sure to enter all your medical expenses not covered by the VA or other insurance.

The software will calculate whether you receive any deduction. If you use a tax professional, just be sure that person knows your total expenses. The IRS has a program to help you determine if you can deduct medical expenses.

FOR MORE INFORMATION: IRS Publication - Medical and Dental Expenses

Kelley C. Long CPA/PFS, CFP, Director of Communications & Marketing, Shepard Schwartz & Harris LLP

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