Is There Any Way To Write Off Healthcare As Medical Expenses?
Tax Professional Answers
What if there were ways to write off medical bills as business expenses? Well, there is; it’s called a Section 105 plan (or Medical Expense Reimbursement Plan). If you qualify, you can write off just about any legitimate medical expense. Tax-deductible expenses include health insurance premiums, long-term care coverage, Medicare and “Medigap” insurance, co-pays, coverage deductibles and out-of-pocket prescription costs, dental, vision, and chiropractic care. Many big-ticket expenses, such as dental braces, fertility treatments, and LASIK surgery, are also covered. The list even includes non-prescription medications and medical supplies like aspirin and cold remedies.
The best part is, this is money you’d spend anyway—whether you get a deduction or not. You’re just moving these expenses from a non- deductible area on your return to a deductible area. You’ll save income tax on whatever you deduct, and you may also save self-employment tax.
If a Section 105 plan won’t work, then a health savings account can be implemented. These arrangements combine a high-deductible health plan with a tax-free savings account to cover reimbursed costs. They give you many of the same benefits as a Section 105 plan, without quite the same degree of flexibility. This will help you extract the highest level of value from your medical expenses.
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