top of page

Creative Deductions

 

Animal expenses

Owning a pet for emotional support may ease your anxiety, but that’s not a legitimate reason for deducting Fluffy’s food, litter, and veterinary bills. A bona fide service animal, such as a guide dog used by someone who has a visual or hearing impairment or a physical disability, is another story. The cost to buy, train and maintain (food, grooming, vet care) a service animal under these circumstances is generally deductible as a medical expense, according to IRS guidelines. If you foster an animal for a qualified 501(c)(3) pet adoption or rescue organization, you may also be able to write off certain unreimbursed expenses such as pet food and vet bills. And if a cat keeps your business free from rats, or a guard dog protects your business from thieves, you might be able to deduct some of the expenses for its care. “If it can be associated with some sort of income, [it] was allowed,” says Mark Luscombe, principal analyst at Wolters Kluwer Tax & Accounting.

Body oil

OK, most of us can’t deduct the cost of body oil, no matter how great it makes your skin feel. But what if you’re a bodybuilder? It takes a lot of oil to make your body shine like that, and it’s a legitimate expense for professional weightlifters.

 

Clarinet lessons

In 1962, a parent deducted the cost of clarinet lessons for her child, says Lisa Greene-Lewis, CPA and tax expert with Diaz Tax. The reasoning: An orthodontist said it would correct the child’s overbite. The IRS allowed the deduction as a medical expense.

A doctor’s note can help you get some other medical deductions – such as costs of quitting smoking or losing weight. Be sure to document your costs – and get that note from the doctor.

​

Cosmetic procedures

The IRS will allow you to include cosmetic surgery in your medical expenses if it is necessary to improve a deformity from (or directly related to) a congenital abnormality, an injury from an accident or trauma, or a disfiguring disease. “There was a case where an exotic dancer, known as Chesty Love, tried to depreciate her breast implants on her taxes,” Greene-Lewis says. “The IRS initially blocked the depreciation deduction, but the U.S. court ruled that the breast implants can be claimed as a business deduction.”

Elevators

If you have mobility problems and can’t leave your multistory house, an elevator is a reasonable solution — and a deductible one, says Melanie Lauridsen, vice president of tax policy and advocacy at the American Institute of CPAs. Two hitches: First, this is a medical deduction. That means you can only use the amount of total qualifying medical expenses that are above 7.5 percent of your adjusted gross income (AGI). Second, if the elevator increases the value of your property, you must subtract that amount from the amount you deduct. The same rule holds true for swimming pools....

​

Swimming pools

Yes, fun is good for you, but you can’t deduct the costs associated with a swimming pool because swimming makes you happy. The IRS did allow a deduction for installing a swimming pool at the home of an arthritis sufferer whose doctor prescribed regular swimming for him, according to eFile. 

Tutors

If your child has a learning disability, such as dyslexia, and you hire a tutor to help, you can claim the cost of that tutor as a medical deduction. “It really has to be like a specialized teacher,” Lauridsen says. “It can’t just be a reading teacher like that you find in a regular public school.” Because this is a medical deduction, it would be subject to the 7.5 percent AGI limitation.

Wedding stuff

What to do with the leftover food from the reception? What about that wedding dress you’ll never wear again? Donate them to charity and take a charitable deduction. To claim the donations, you’ll need to itemize deductions on your tax return using Schedule A.

Whaling boat repairs

If you happen to own a whaling boat, you can deduct $10,000 a year for repairs. Don’t run out and buy one. The U.S. government bans whaling, but certain Native American tribes are allowed to do so.

Remember that it’s not worthwhile to itemize your deductions unless you have more itemized deductions than the standard deduction, which is $14,600 for single filers and $29,200 for married couples filing jointly for the 2024 tax year. Heads of households get a $21,900 standard deduction. For those 65 and older or blind and who are filing jointly, the standard deduction increases by $1,550 ($1,950 for single filers and heads of households).

​

Medical Expenses that are often overlooked:

10 vision-related expenses

Services and products used to improve vision are qualifying medical expenses. This includes contact lenses and related products. Below are 10 vision expenses you may be eligible to deduct in 2025:

14 dental expenses

Dental expenses not covered by insurance may be tax deductible if they help prevent or alleviate dental disease. Below are 14 dental expenses that you may be able to deduct:

13 prescription medications

Medications prescribed by a healthcare professional count as qualifying medical expenses. This is also true for insulin that’s sold over the counter. Below are 13 of the most commonly prescribed medications that are tax deductible.

Antidepressants

Medications for chronic weight management 

Medications for erectile dysfunction 

Type 2 diabetes medications

11 family planning and fertility treatment expenses

You can deduct the following 11 expenses related to family planning and fertility treatments: 

9 types of insurance premiums

You may be able to claim health insurance premiums on your tax return. This depends on how much you spent on medical care, how you paid for premiums, and if you were self-employed. But you cannot deduct expenses that were reimbursed by an insurance plan, a flexible spending account, a health savings account, or another tax-advantaged savings account.

If you paid for any of these nine types of insurance premiums with after-tax dollars, they may be deductible:

If you were self-employed during the year, you may be eligible to claim the self-employed health insurance deduction for premiums you paid out of pocket, even if you claim the standard deduction on your taxes. The deduction allows you to claim up to 100% of the premiums you paid for yourself, your spouse, your dependents, and your eligible adult children. 

6 home improvement expenses

If you have a disability and needed to make certain accommodations to your home, you can deduct costs for the following six items as medical expenses:

  • Built ramps to get in and out of your home

  • Installed grab bars in a bathroom

  • Lowered kitchen cabinets

  • Moved electrical outlets

  • Set up outdoor wheelchair lifts (porch lifts) 

  • Widened doors and hallways

36 other qualified medical expenses

Here is a list of 36 additional items that you can deduct as medical expenses:

  • Acupuncture treatments 

  • Ambulance services 

  • Annual physical exams

  • Artificial limbs 

  • Bandages 

  • Blood sugar test kits 

  • Body scans 

  • Breast reconstruction surgery 

  • Car modifications for people with disabilities

  • Chiropractor services for medical care  

  • Copays

  • Crutches

  • Guide dog trained to assist visually impaired or hearing-disabled people

  • Hand sanitizer for preventing the spread of COVID-19

  • Hearing aids

  • Inpatient care at a hospital

  • Lab fees

  • Masks for preventing the spread of COVID-19

  • Medical conference attendance (if related to the treatment of a specific condition)

  • Nursing home costs, including lodging and meals

  • Organ transplant

  • Osteopathic services for medical care

  • Oxygen equipment

  • Oxygen to relieve breathing problems caused by a medical condition

  • Psychiatric care

  • Services from a Christian Science practitioner for medical care

  • Substance use disorder treatment

  • Therapy received as medical treatment

  • Transportation for medical services

  • Treatment at a health institute if certain requirements are met

  • Visits to a psychologist for medical care

  • Weight-loss programs to treat heart disease, hypertension, and certain other conditions

  • Wheelchair maintenance services, like battery or tire replacement

  • Wheelchairs

  • Wigs that are medically necessary

  • X-rays

Which medical expenses are not tax deductible?

You are not allowed to deduct expenses that are for general health purposes, such as gym membershipsvitamins, and diet food. You also cannot deduct payments for future medical and dental services.

Below are some other services and items that are likely not tax deductible:

  • Deodorant

  • Diapers

  • Facelifts

  • Hair transplants

  • Health beverages

  • Herbal supplements

  • Insurance premiums paid by your employer

  • Liposuction

  • Nicotine patches and gum that don’t require a prescription

  • Nonprescription medications

  • Nutritional supplements 

  • Surrogacy expenses

  • Toothpaste

  • Travel to and from work

The bottom line

If you itemize deductions, you may be able to deduct medical and dental expenses that have not already been reimbursed. To qualify as deductions, expenses must be related to the prevention or treatment of a specific medical condition. The total expenses must exceed 7.5% of your adjusted gross income if you want to deduct them on your tax return.

CONTACT
LOCATION
OPENING HOURS

Email: Adrian@diaztax.com
Phone: 714-549-1786

 

Diaz Enterprises Inc. 

1919 S. Main Street 

Santa Ana, CA 92707

Mon - Fri: 8am - 6pm

​​Saturday: 8am - 3pm

​Sunday: Open in Corona Office

© 2035 by ASHTON & PORTER. Powered and secured by Wix

bottom of page