Yes, you may deduct transportation costs for both yourself and your dependent if the trip was primarily for medical care that qualify as medical expenses. The actual fare for a taxi, bus, train, or ambulance can be deducted. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses. With either method you may include tolls and parking fees.
You may deduct premiums you paid for your health, dental and vision coverage paid through your employer, only if they are not part of an employer-sponsored health insurance plan (also called cafeteria plan). If they are part of a cafeteria plan, then the amount you paid as premiums are already exempt from tax and cannot be taken as a deduction.
All of your eligible medical expenses including mileage and your insurance premiums (if they are deductible) and any costs you paid out of pocket for doctor visit co-pays, etc. can be deducted for both you and your dependent. However, in order to take advantage of these deductions, you cannot claim the standard deduction. You would fill out Schedule A for your itemized deductions. The portion of Schedule A which pertains to the total of your medical expenses must exceed 7.5% of your AGI before any deduction will be allowed.
Adjusted gross income is defined as gross income minus adjustments to income. If you look at your tax return from last year, your AGI would be shown on:
- Line 21 if you filed a Form 1040A
- Line 37 if you filed a Form 1040
So as an example, if your AGI is $50,000, then 7.5% of that is $3,750. So your total medical deductions would need to exceed $3,750 before a deduction would be allowed, and you would only be allowed the portion that was more than $3,750.
Your expenses for tax preparation fees are also deductible on Schedule A but are not subject to any limit.
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