Friday, September 6, 2013

Is Orthodontic Treatment Tax Deductible?

Speilberg Orthodontics writes: Recently, Apex NC orthodontic doctor Dr. Alena Spielberg addressed the question of how much braces cost, the factors that affect the cost and ways to finance the purchase of orthodontic treatment. If you or your child need to start wearing braces, however, don’t overlook the fact that you can get a tax break to help cover the expense. Some charges are tax deductible when you file your federal income tax return.


Medical and Dental Category
The Internal Revenue Service (IRS) category of Medical and Dental Expenses is fairly broad. All costs incurred to prevent, diagnose, treat, cure or prevent a medical condition or an illness are tax deductible under this category. In terms of orthodontic treatment, the costs that you can claim include:
·       Professional fees paid to either the orthodontist or any other dental practitioner
·       Cost of dental supplies including equipment, anesthesia, medications and other diagnostic services
You can also claim the costs of transportation to and from your orthodontic appointments as medical expenses. This includes expenditure such as gas and oil, the cost of tolls and parking fees or the standard rate for medical travel expenses.
Itemize Your Deductions
When you file your taxes you can choose between the standard deduction or an itemized one. In most cases, it’s useful to calculate it both ways and choose the option that offers you the best saving on tax. In the case of orthodontic treatment, however, it’s mandatory to itemize the deductions if you want to claim the expenses. Then add the total to all your other eligible medical and dental expenses and enter it on Line 1 of Schedule A, on the IRS Form 1040.
Timing is Crucial
Orthodontic patients are only permitted to deduct the expenses for your treatment during the applicable tax year. You can claim expenses for yourself, your spouse and any dependents, but if your dental insurance contributes to the cost then the amount of the company’s contribution must be deducted from the overall total for the year. Keep all receipts for the payments you’re claiming; in case you are assessed for tax purposes, you may need to prove the value of your treatment and the fact that you underwent it during the year of assessment.
What’s Allowed?
You are only allowed to submit your medical tax deduction for eligible orthodontic expenses once your total medical costs exceed 7.5% of your adjusted gross income. You can deduct the portion that is paid towards your deductible or co-pay portion, or any amount that is paid out of pocket without reimbursement. You are not permitted to deduct any payments that have been reimbursed by an insurance plan, flexible spending account or healthcare savings account, although you can deduct premiums for dental insurance that covers orthodontic treatment.
Cosmetic Treatment
While early orthodontic treatment for children is usually not questioned by the IRS, braces for an adult will not be tax deductible if they are for purely cosmetic reasons. So if you’re the one wearing the braces and undergoing treatment, you may need to ask your dentist or orthodontic doctor for a letter to submit to the IRS along with your tax return. The letter should state the medical reason why you need braces, such as malocclusion or other dental problems.
Orthodontic treatment such as wearing braces can be a costly process, but it’s highly successful and makes a significant difference to a patient’s overall health and well-being, confidence and dental hygiene. These tax breaks may make the difference between whether you can afford the treatment of not. For more information about how to finance braces, schedule an appointment with Dr. Spielberg to discuss your needs. 

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