Can i claim dental work on my taxes

Table of Contents Show

Are Dental Bills Tax Deductible?
Can I Claim Dental Expenses on My Taxes?
Taking Advantage

Are Dental Bills Tax Deductible?
Can I Claim Dental Expenses on My Taxes?
Taking Advantage

Now that Congress has passed sweeping tax reform, many are left wondering if they can still deduct dental expenses in 2018 and beyond. Here are some key facts to consider before you start doing your taxes.

Are Dental Bills Tax Deductible?

To help American taxpayers cope with hefty medical bills, the IRS has traditionally allowed them to deduct medical and dental expenses that amounted to 10 percent of their adjusted gross income (AGI) for a given tax year. The new Tax Cuts and Jobs Acts (TCJA) preserves this part of the tax code, while lowering the qualifying percentage to 7.5 percent.

Can I Claim Dental Expenses on My Taxes?

While it may sound like a great way to ensure a bigger tax return, not everyone can take advantage of dental and medical tax deductions. To qualify, you must meet a few requirements, including:

Your dental and medical expenses must amount to at least 7.5 percent of your AGI for the tax year.
Qualified costs are limited to expenses paid for cure, diagnosis, mitigation, prevention, or treatment of disease, including dental and vision costs.
All costs must have been incurred by the taxpayer, a spouse or dependent.
You can only deduct dental and medical expenses paid during the tax year.

You can also deduct expenses relating to travel for medical care, including ambulance fees, bus fare, mileage on your car and parking fees. You cannot, however, deduct any medical expenses for which you were reimbursed, such as by an employer or insurer. You are also not allowed to deduct any medical expenses paid for by Flexible Spending Arrangements or Health Savings Accounts, which are already typically tax-free.

It’s also important to note that the 7.5 percent threshold will revert back to 10 percent for tax years after 2018.

Taking Advantage

If you incurred substantial medical or dental expenses in a given year, it may make sense to schedule dental treatments before the end of the calendar year – if it will allow you to surpass the 7.5-percent threshold. This way, you will be able to deduct all of your medical and dental expenses for the entire tax year, amounting to hundreds or even thousands of dollars in tax savings.

If you have any questions about deductions or your tax liability, consult a licensed tax expert.

As tax season approaches many of us are wondering what expenses do and do not qualify as tax deductible. Though the majority of medical expenses incurred by Canadian’s are paid for by the various provincial health care systems not all medical expenses qualify. Dental work in particular can be costly, and is not covered under provincial health care plans.

Many Canadian’s also carry private health insurance, either through an employer or obtained directly from private health insurance companies like Blue Cross, Desjardins and Sun Life. These companies supplement your provincial health coverage and cover medical expenses such as dental work, vision care and prescription medications. However, depending on your plan you might still have to pay for some expenses out of pocket. To help you with this cost the Canada Revenue Agency allows dental expenses to be used as medical expense deductions when you file your income tax. Dental expenses includes fillings, dentures, dental implants and other dental work that is not covered by your insurance plan. The only dental work that is not covered is cosmetic work, such as teeth whitening, which is not deemed medically necessary. Whenever you claim anything on as a deduction on your income tax you should always be sure to save your receipts and any other relevant documentation. You do not need to include these documents and receipts with your tax return but the Canada Revenue Agency may ask you to produce them in order to backup your claim.

We believe that everyone should have access the the denture care they need to stay happy, healthy and pain free. That is why the Future Smiles Denture Clinic works closely with our patient’s insurance coverage to obtain the best coverage we can for them with the aim of reducing or eliminating out of pocket expenses.

For more information on dentures and dental implants, or to book an appointment, contact the Future Smiles Denture Clinic today at 403.475.0016 and visit calgarydentureclinic.net.