Medical Expenses

AAA

DEFINITION of 'Medical Expenses'

Any cost incurred in the prevention or treatment of injury or disease. Medical expenses include health and dental insurance premiums, doctor and hospital visits, co-pays, prescription and over-the-counter drugs, glasses and contacts, crutches and wheelchairs, to name a few. Medical expenses that are not reimbursed are deductible within certain limits (see below).

INVESTOPEDIA EXPLAINS 'Medical Expenses'

Taxpayers with access to group health insurance coverage are seldom able to deduct medical expenses that are not reimbursed on their taxes. Only those who itemize their deductions are eligible to claim any medical expenses on the Schedule A. Furthermore, only those expenses that exceed 7.5% of the taxpayer's adjusted gross income can be deducted.

RELATED TERMS
  1. Adjusted Gross Income - AGI

    A measure of income used to determine how much of your income ...
  2. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
  3. Health Savings Account - HSA

    An account created for individuals who are covered under high-deductible ...
  4. Archer MSA

    A savings account that earns tax deductible interest for medical ...
  5. Case Management

    Planning, processing and monitoring the healthcare services given ...
  6. Guaranteed Issue Rights

    A right afforded to individuals insured under Medicare that requires ...
Related Articles
  1. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

  2. 9 Penalty-Free IRA Withdrawals
    Taxes

    9 Penalty-Free IRA Withdrawals

  3. Health-y Savings Accounts
    Retirement

    Health-y Savings Accounts

  4. Insurance Myths Involve Houses, Cars ...
    Insurance

    Insurance Myths Involve Houses, Cars ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center