When it comes to dental insurance and filing taxes, both take research and time to fully grasp. Take the time to fully understand how to deduct dental expenses and which teeth deductions you deserve and which you don’t.
Get to know your options when it comes to deducting dental expenses and get going on tax season!
If you’re itemizing your deductions, make a list of the dental expenses from last year. Remember: You can only deduct medical and dental expenses that are more than 7.5 percent of your adjusted gross income (AGI) when filing. In most cases, your AGI is lower than the total income you report on the first lines of your tax return. Your AGI will never be more than the total income you report on the first lines of your tax return. To calculate your adjusted gross income (AGI), click here.
Can I Deduct Dental Expenses?
A document from the US Department of the Treasury Internal Revenue Service called Publication 502 specifically lays out an acceptable medical deduction, including dental expenses.
Preventive Treatment Examples:
- Standard dental procedures, like teeth cleanings, sealants, and fluoride.
The document goes on to say: “These expenses include payments for legal, medical services rendered by physicians, surgeons, dentists, and other medical practitioners.”
“[Deductible expenses] include the costs of equipment, supplies, and diagnostic devices needed for these purposes.” The IRS considers a toothbrush a general health item and can’t be deducted.
Dental Treatment Examples:
- X-rays, fillings, braces, extractions, dentures, crowns and root canals, and other dental ailments.
Did you know that transportation to and from these dental appointments are also deductible?
Sometimes a dental procedure is considered preventive because of the circumstances. If a dental implant was done to repair damaged teeth, it’s helping give you better oral health and could be deducted. The IRS uses the code your dentist writes on your dental chart to indicate the procedure and determine if it can be deducted from your taxes.
If you use a flexible spending account (FSA) or health savings account (HSA) for medical or dental expenses, that money was pre-tax and cannot be claimed or deducted.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.