When tax season arrives, people all around the country begin to dive into their financial records in attempts to boosting the refunds they may receive for the year. However, there are many different tax deduction opportunities available that most individuals are unaware even exist in today’s society. Knowing some of the tax reductions you may be eligible for can ultimately help to save you money when paying taxes while increasing the refund amount you are eligible for simultaneously.
Most medical expenses can be deducted when filing taxes if the medical expenses you have incurred are valued at 7.5% or more of your own adjusted annual income. Medical deductions can include doctor and chiropractor visits, acupuncture, travel expenses, therapy, gym memberships, meal plans, smoking cessation classes, equipment, and even personal trainers. There has been a documented case of a man deducting the entire cost of his pool, supplies and chemicals after being diagnosed with emphysema and told by a doctor to invest in a pool to improve his overall lung health.
Although it is not common, in some cases cosmetic surgery has been known to qualify as a tax deduction. In 1988, a stripper who claimed to be operating a business was able to get a $2,088 tax deduction due to her breast enlargement surgery being considered a business investment. She was originally denied, but then granted the deduction in appeals court. Cosmetic surgery cannot always be claimed as a tax deduction as it depends on your own profession and the industry you work in. It is best to work with professional accountants before claiming any potential deduction.
In 1962, orthodontists claimed that playing the clarinet can help with overbites in children and should qualify as a medical expense. If your child has an overbite, it is possible to obtain tax deductions for the total costs of any lessons and the instrument itself with proof of an overbite being medically documented.
Sex-Change Operation Deduction
A man who had been diagnosed with gender-identity disorder was allowed to deduct $14,500 for the sexual-reassignment surgeries and hormone therapy he was provided due to the situation being diagnosed as a medical disorder.