What are the limits on each kind of itemized deduction?
Here are some of the expenses you can deduct and their limitations: Medical & Dental Expenses There are many items you can deduct as medical expenses. You can deduct any expense you pay for the prevention, diagnosis, or medical treatment of physical or mental illness, and any amounts you pay to treat or modify any structure or function of the body for health (but not for cosmetic purposes). You can also deduct the cost of transportation to the locations where you can receive this kind of medical care, your health insurance premiums, and your costs for prescription drugs and insulin. Your medical expenses must equal at least 7.5% of your adjusted gross income before you can start taking the deduction. The medical expenses needed to meet the 7.5% floor don’t give you any tax benefit. You get to deduct the medical and dental expenses above that floor. Example: Emma’s adjusted gross income was $100,000, and she spent $8,000 on medical expenses, because her expenses equaled at least 7.5% of
