MARCH 2016 ON HEALTH CONSUMER REPORTS 11 ConsumerReports.org/health ILLUSTRATION: DAN PAGE COLLECTION/THEISPOT W ith health care costs climb- ing, you’ve probably noticed that you’re spending a larger chunk of your income on medical ex- penses. And older Americans and those with health conditions bear a dispropor- tionate share of the cost burden. You may find some relief at tax time through medical deductions. But because the rules can be complicated and change from one year to the next, here’s some general information and advice on where to turn for help. Always check with a pro- fessional or the Internal Revenue Service (IRS) to determine how to proceed. GET THE RIGHT ADVICE More than 60 percent of Americans hire someone to prepare their taxes. For ad- vice on finding the best tax-preparation help for you, go to ConsumerReports.org/ cro/find-tax-help. The IRS also offers a tax guide for seniors, with information on free tax-prep services, at irs.gov/pub/ irs-pdf/p554.pdf. TO ITEMIZE OR NOT? The standard federal tax deduction is $6,300 if you’re single (or married filing separate returns) and $12,600 if you’re married filing jointly. For those age 65 or older, it’s $7,850 and $13,850, respec- tively. Calculate yours at irs.gov/uac/How- Much-Is-My-Standard-Deduction%3F. But if you had high medical and dental ex- penses, you may do better by itemizing. How to decide? Be aware that you can deduct medical expenses only if you itemize. And for most people, only the expenses that are higher than 10 percent of their adjusted gross income are deduct- ible. (The AGI is your income minus de- ductions like alimony and student loans.) But if you’re 65 or older, expenses over 7.5 percent of your AGI are deductible. To see whether your medical expenses may reach the cutoff, use the tool at The Proactive Patient irs.gov/uac/Can-I-Deduct-My-Medical- and-Dental-Expenses%3F. KNOW WHAT’S DEDUCTIBLE Consider some potential deductions you may be unaware of, such as the cost of a weight-loss program if you’re diagnosed as obese by a physician; admission and transportation to a medical confer- ence relating to a chronic disease that you, your spouse, or dependents have; personal-care items such as hearing aids and glasses; and the care of a service dog. Other possible deductions to ask about include long-term care insurance for you and your dependents and, if you’re self- employed, your health-insurance pre- miums. If you have a physical or mental disability, you may be able to deduct the costs of health services and products you need to be able to work, such as computer- assistive technology. Even home improvements may qualify. My parents will probably itemize this year because in 2015 they had their first-floor bathroom modified to be handicapped- accessible. Because the improvements— widening doors and installing handrails, wheelchair ramps, and a roll-in shower— are considered medi- cally necessary, they can be deducted. For a complete list of health-related deduc- tions, go to irs.gov/pub/irs-pdf/p502.pdf. CONSIDER CAREGIVING COSTS Rules are especially complicated for these deductions, so check the ins and outs carefully with a professional. For example, you may be able to deduct part of what you paid someone to care for a dependent household member. But the care must have been needed so you or your spouse could work or look for work. You’ll find more at irs.gov/pub/irs-pdf/p503.pdf. PLAN FOR NEXT YEAR If you expect big medical expenses ahead, being deliberate about when you spend may help you get to the percent- age you need for deducting those costs. Taxpayers can bunch medical deduc- tions into one year to maximize the de- ductions, says Martin M. Shenkman, an attorney and certified public accountant specializing in tax planning in Fort Lee, N.J., and New York City. For example, if you have had a lot of needed—and ex- pensive—medical care in a given year, consider buying an extra pair of pre- scription glasses if you can use them, stocking up on products like blood glucose test strips, or making sure that you schedule (or pay for) a series of planned dental treatments in the same calendar year. Orly Avitzur, M.D., M.B.A., is Consumer Reports’ medical director. Board certified in neurology, she is a fellow of the Ameri- can Academy of Neurology, a clinical instructor at the Yale University School of Medicine, and a medical consultant to the New York Rangers hockey team. Don’t-Miss Medical Tax Breaks Before you file your taxes this year, get yourself up to speed on health-related exemptions Orly Avitzur M.D., M.B.A. Some home improvements may qualify as deductible health-related expenses.