![]() ![]() Trade Adjustment Assistance (TAA) recipient.Who’s eligible? If you’re one of the following, you’re eligible to claim the HCTC: The Health Coverage Tax Credit (HCTC) is a credit that covers 72.5% of monthly health insurance premiums paid by eligible taxpayers. You can’t deduct medical costs covered by the reimbursement. If you’re receiving a settlement as well as reimbursements, the settlement can be taxed but the reimbursements can’t. If you’re getting a reimbursement for physical injury and expenses from a legal action, you can deduct that amount from your taxes. Some expenses may be paid by the employer as a reasonable accommodation under the Americans with Disabilities Act (ADA). Expenses can include a reader for someone who is blind, a personal assistant, or a piece of equipment necessary to your job. If you’re physically or mentally disabled and require equipment or services to perform your job, you can deduct your expenses. You can also deduct any premiums for long-term care (LTC) insurance you paid during the year. If you’re self-employed, you can deduct any insurance premiums for you, your spouse and dependents. For tax year 2020, the maximum contribution was $2,750 for each spouse. Similar to HSAs, contributing to an employer-sponsored Flexible Spending Arrangement (FSA) means you’re contributing pre-tax dollars, and are thus reducing your taxable income. ![]() Flexible Spending Arrangement (FSA) contributions But if your employer contributes to your HSA, you may or may not be able to deduct those contributions. If you’re over 55, you can contribute an extra $1,000 for the year. For 2020, the maximum allowed is up to $3,550 for an individual or $7,100 for a family annually. If you contribute any money to your Health Savings Account (HSA), that acts as a deduction on your taxable income. Health Savings Account (HSA) contributions Here are a few medical deductions the IRS allows without itemizing. Your filing status and number of dependents don’t affect these deductions. Deducting these expenses lowers your taxable income, cutting your taxes. But there are some medical expenses that are deductible even if you don’t qualify for deducting medical expenses as an itemized deduction. Which medical deductions can I still claim with the standard deduction?ĭeducting medical expenses can be difficult, because of the required AGI floor of 7.5%. ![]()
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