Is Chiropractic Care Tax Deductible?

The Internal Revenue Service (IRS) permits taxpayers to deduct certain medical expenses, which can reduce their taxable income. This provision aims to alleviate some of the financial burden associated with healthcare costs. Deductions function by reducing the amount of income subject to taxation, potentially lowering a taxpayer’s overall tax liability. Medical costs represent a specific area where taxpayers may find relief. Understanding the rules and requirements for these deductions is important for accurate tax filing.

Understanding Deductible Medical Expenses

The IRS defines deductible medical expenses as payments made for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Chiropractic care is included within this definition when it addresses a specific medical condition. For example, services from a chiropractor for issues like back pain or nerve impingement can be considered deductible.

Conversely, chiropractic care sought solely for general health improvement, wellness, or cosmetic purposes does not qualify for a deduction. The expense must be for a genuine medical reason. Other common deductible medical expenses include fees paid to doctors, dentists, surgeons, and other medical practitioners, as well as costs for prescription medications and inpatient hospital care. Payments for transportation essential to medical care, such as mileage for personal car use, taxi fares, or ambulance services, are also eligible.

The distinction between “medical care” and “general health” expenses is important for deductibility. Expenses for items or activities merely beneficial to overall health, such as vitamins or a gym membership for general fitness, are not deductible. However, if a weight-loss program or a specific medical conference is undertaken for a diagnosed disease, the costs may become deductible. Health insurance premiums paid out-of-pocket can also be included as medical expenses, provided they are not already tax-advantaged.

Meeting the Adjusted Gross Income Threshold

Taxpayers can only deduct medical expenses exceeding a specific percentage of their Adjusted Gross Income (AGI). For most tax years, this threshold is 7.5% of the taxpayer’s AGI. If total qualified medical expenses do not surpass this percentage, no deduction can be claimed. AGI is a taxpayer’s gross income minus certain deductions, such as contributions to a traditional IRA or student loan interest.

For example, if a taxpayer has an AGI of $50,000, the 7.5% threshold is $3,750 ($50,000 x 0.075). In this scenario, only medical expenses exceeding $3,750 are eligible for the deduction. If the taxpayer had $5,000 in total qualified medical expenses, they could deduct $1,250 ($5,000 – $3,750). This threshold applies to the cumulative total of all qualified medical expenses paid for the taxpayer, their spouse, and their dependents, not just a single type of expense like chiropractic care.

Necessary Documentation for Deduction

Maintaining comprehensive and accurate records is important for supporting medical expense deductions. Taxpayers should retain all receipts and invoices from medical and dental providers, including those for chiropractic services. These documents should clearly show the date of service, provider name, amount paid, and a description of the service received. Explanation of Benefits (EOB) statements from insurance companies are also important, as they detail what portion of expenses was covered by insurance and what amount was paid out-of-pocket.

Records of prescription purchases, including the medication name and cost, should also be kept. For transportation costs related to medical care, a detailed log of mileage, tolls, and parking fees is advisable. While these records are not submitted with the tax return, they must be readily available if the IRS selects the return for review. Keeping organized documentation for at least three years from the date the return was filed is a common practice for tax purposes.

Claiming the Medical Expense Deduction

To claim the medical expense deduction, taxpayers must itemize their deductions on Schedule A (Form 1040), Itemized Deductions. This form is divided into sections, with medical and dental expenses listed first. The process involves totaling all qualified medical expenses paid during the tax year.

Once total qualified medical expenses are calculated and the Adjusted Gross Income (AGI) threshold subtracted, the resulting deductible amount is entered on Schedule A. Taxpayers must determine whether their total itemized deductions, including medical expenses, exceed their standard deduction amount. If itemized deductions are greater, choosing to itemize can result in lower taxable income. The final deductible amount from Schedule A is then transferred to Form 1040, contributing to the overall calculation of taxable income.