Medical and Dental Expenses allowed by the Internal Revenue Service that qualify for tax deductions. Make sure you keep your receipts!

This list includes both Medical and Dental.

If you or your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return

What you should know about the TAX LAW:

1. You must itemize to qualify for medical and dental expenses. This is done on a  Form 1040, Schedule A.

2. The deduction is limited.

You can deduct total medical care expenses that exceed 7.5 percent of your adjusted gross income for the year. You figure this on Form 1040, Schedule A. on your tax return.

3. Expenses must have been paid in 2011.

You can include the medical and dental expenses you paid during the year, regardless of when the services were provided. You will need to have good receipts or records to substantiate your expenses if your tax return is audited by the IRS.

4. You cannot deduct reimbursed expenses.

Your total medical expenses for the year must be reduced by any reimbursement. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital. You receive the money back no deduction, it is that simple.

5. Whose expenses  may qualify.

You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement or those with a qualifying relative who is not your child.

6. Types of expenses that qualify for the medical or dental deductions.

You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin.

You can also include premiums for medical, dental and some long-term care insurance in your expenses. Starting in 2011, you can also include lactation supplies.

7. Transportation costs may qualify for a tax deduction.

You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You can also deduct the actual fare for a taxi, bus, train, plane or ambulance as well as tolls and parking fees.

If you use your car or other vehicle for medical transportation, you can deduct actuall out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2011.

8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if used to pay qualified medical expenses including prescription medication and insulin.

9. Should you have any questions call us today and get the answers from Former IRS Agents.