Medical and dental expenses that a taxpayer pays during the year may be deductible and reported on Schedule A as part of itemized deductions. If the total itemized deductions exceed the standard deduction, claiming these expenses may help reduce taxable income.
Steps to Itemize Medical and Dental Expenses
1. Access Federal Forms
From the left-side menu on the main tax return page, select Federal Forms to expand the list of available forms.
2. Open the Deductions Section
Click on Deductions to open the relevant deduction forms.
3. Navigate to Schedule A
Under Itemized Deductions, find Schedule A and click Start to begin entering medical and dental expenses.
4. Enter Medical and Dental Expenses
Health Insurance Premiums (Self-Employed or Employer-Paid): Enter the total amount of health insurance premiums paid by the taxpayer.
Medicare Premiums from SSA-1099: Medicare premiums automatically populate from Form SSA-1099.
Long-Term Care Insurance Premiums: Input the eligible amount based on the taxpayer’s age group.
Medical Miles: Enter the total number of miles driven for medical purposes. The software will calculate the deduction at 22 cents per mile.
Other Medical Expenses: Click Add to itemize additional qualified medical expenses, providing a description and cost for each.
5. Calculate the Deductible Amount
Medical expenses that exceed 7.5% of Adjusted Gross Income (AGI) will be included in the itemized deductions total.
Ensure that Form 8962 (Premium Tax Credit) is completed before reporting any advance payments received.
6. Opt for Itemized Deductions
If itemized deductions provide a greater tax benefit than the standard deduction, the taxpayer can choose to apply them.
To force itemization, check the box at the end of Schedule A to apply itemized deductions even if they are lower than the standard deduction.
Final Notes
✔️ Only unreimbursed medical expenses can be deducted.
✔️ Keep detailed records and receipts for all medical expenses claimed.
✔️ This guide is for informational purposes only and does not constitute legal, tax, or accounting advice.
By following these steps, taxpayers can correctly report medical and dental expenses as itemized deductions in TenForty, potentially lowering their taxable income.