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What Medical Expenses Can I Deduct From My Taxes?


Medical expenses add up quickly, especially if the costs aren’t covered and reimbursed through your health insurance. If you or your dependents have racked up medical expenses, you might have the opportunity to claim them as a deduction on your next tax return.

To ensure you’re making the most of the medical expense deduction, AA Tax & Accounting Services is here to breakdown how it works.

Are medical costs tax-deductible?

Suppose you or a dependent have a high volume of medical expenses. In that case, you’ll be pleased to know that the Internal Revenue Service allows you to deduct unreimbursed medical expenses from your tax return.

However, there are stipulations to the types of medical expenses that can be counted towards your tax deductions.

When filing your tax return, you can deduct qualified medical expenses if they equal more than 7.5% of the previous year’s adjusted gross income.

For instance, if your adjusted gross income is $75,000, any amount exceeding the first $5,625 of medical expenses can be deducted. This means that if your medical expenses totaled $15,000, you would be eligible to deduct $9,375.

Medical expenses eligible for tax deductions

To prepare you for the upcoming tax season, we’ve put together a list of qualified medical expenses that can be deducted from your tax return:

  • Acupuncture or other forms of alternative treatments
  • Addiction treatment, which includes food and lodging at a rehabilitation center
  • Adaptive equipment including wheelchairs, shower seats, and other disability accommodations
  • Birth control pills
  • Blood-testing kits and strips for diabetes
  • Breast pumps and pumping equipment
  • Chiropractic services for medical purposes
  • Diet food and supplements when prescribed by a doctor to alleviate a specific medical condition
  • Eye exams and, if applicable, contact lenses and prescription glasses
  • False teeth
  • Hearing aids or other hearing equipment
  • Home improvements to increase accessibility due to a medical disability
  • Household help for nursing care services
  • Lodging when traveling out-of-town for a medical treatment
  • Organ transplants
  • Prosthetic limbs
  • Psychiatric care
  • Reproduction costs covering abortions, vasectomies, and fertility treatments
  • Service animals meals, training, and veterinarian expenses
  • Sex-reassignment surgery and hormone therapy to treat gender identity disorder (GID)
  • Special education
  • Programs supporting physical or mental conditions such as dyslexia or ADHD
  • Public transportation costs to and from medical visits
  • Wigs for those with a medical condition such as cancer or alopecia

You must track all your medical costs throughout the year, so come tax season, you can easily determine if you need the requirements to deduct your medical expenses from your tax return. Hold onto all copies of receipts and make a note of which expenses haven’t been reimbursed so you can reduce your tax bill with little headaches.

Additional rules to be aware of

If you’re planning to deduct medical expenses from your tax bill, here are two additional rules to be aware of:

1. You are only allowed to include medical expenses that were paid during the tax year.

2. If you were reimbursed for any medical expense through your insurance, that bill cannot be included in your tax deduction.

How to claim the medical tax deduction

Now that you’re aware of what types of medical expenses can be deducted from your tax bill, you must set yourself up for success come tax season.

You will be required to itemize your deductions, which is why it’s helpful to hold onto and organize all receipts you receive throughout the year.

Tax consulting services in Cedar City, Utah

If you have a high amount of medical expenses, AA Tax & Accounting Services can help you better understand how to maximize your medical expense deduction to save you the most money on your upcoming tax bill.

No one should go into tax season with their questions unanswered. Our team of tax consultants has the experience navigating the most effective strategies for maximizing their deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money on your medical expenses. Contact us to schedule an appointment.

Tax Info For Living In Utah But Working In Another State


Tax season can be stressful — and if you find yourself living in Utah and working in another state, you might be unsure how to navigate filing your tax returns this year. Depending on your status as a Utah resident, you may be required to pay tax on any income earned elsewhere.

No matter where you earn an income, you will need to file a tax return. When earning income in one state while living in another, you might find yourself filing a state tax return in your state of employment. While certain states like Alaska, Texas, Wyoming, Florida, New Hampshire, Washington, South Dakota, Nevada, and Tennessee don’t charge income tax, the state of Utah does.

To help you navigate this scenario, AA Tax & Accounting Services has put together a quick guide explaining when you will be required to pay taxes on income earned in another state.

Are you a Utah resident on non-resident?

If you live in Utah and work in another state, your state income tax requirements will be dependent on your Utah state residency.

When your permanent residence is in Utah, and you travel outside of the state for work, how long are you in the other state?

Do you have another residence in the other state?

If you leave your Utah residence for less than half a year, your income in another state is taxable in Utah. However, if you are a non-resident of Utah, which is classified as someone who has property in Utah but lives elsewhere for more than half the year, you aren’t required to pay Utah state income tax on any earnings from the other state since you aren’t legally a Utah resident.

What a non-resident needs to know

If you have earned income in Utah but are considered a non-resident of the state, you must file a Utah state tax return. In most cases, this income is earned while conducting business in the state, and you will need to file a Utah tax form called Form TC 40B.

Am I required to file taxes in both states?

In most situations, you will be required to file state income tax. There are a few scenarios where you might not be required to file taxes in both states.

The first reason is if the state doesn’t charge state income tax, such as Alaska, Texas, Wyoming, Florida, and a few others.

Another situation in which you might not be required to file taxes in both states is when a state has an agreement with bordering states. This agreement, known as a reciprocal tax agreement, allows individuals to live in one state and work in the other without filing two state tax returns.

Because Utah does not have reciprocity, you will likely need to file two separate state tax returns: a permanent resident and another non-resident.

How to claim credits for out of state tax

When filing your tax return as a Utah resident and claiming income that you earned out-of-state, you have the option to claim a credit for any income taxes paid to another state. This rule prevents you from facing double taxation on income earned out-of-state.

Tax consulting services in Cedar City, Utah

If you’re dealing with a unique situation, such as living in Utah and working in another state, we recommend consulting certified public accountants like AA Tax & Accounting Services when filing your tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help navigate tax season smoothly when living and working in separate states. Contact us to schedule an appointment.

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