With the end of the year approaching, it’s time to begin thinking about, and gathering relevant documentation for, your annual income taxes. And one thing many people fail to consider is that Invisalign and other preventive or restorative dentistry procedures may be deducted from your tax return as medical expenses.
If you have questions about deductions for dental or other medical expenses, it’s important to speak with your tax professional. As we will discuss below, there can be pros and cons to taking such deductions depending on your individual circumstances.
Dental Work and Tax Deductions
The Internal Revenue Service (IRS) allows you to deduct a percentage of expenses related to the costs of diagnosing, treating, improving, or preventing a qualifying medical condition. In dentistry, this may include procedures such as Invisalign to straighten teeth and treat malocclusions (bite conditions), dental implants to replace missing teeth and prevent further oral health erosion, dental crowns to treat a damaged tooth or support a bridge, and other procedures.
The deductions relate to your out-of-pocket expenses and may encompass costs that include physicians’ fees, in-patient care, prescription medications, medical supplies, and transportation to and from your treatment. For more detailed information on qualifying expenses and how they should be itemized, see the IRS medical and dental expenses page.
Dental Deductions for Individuals and Family
Tax deductions for Invisalign and other dental work are not limited to individuals.
As appropriate based on your filing status, you may also include the cost of qualifying dental expenses for a spouse or those you claim as dependents. For example, if your teenager would benefit from Invisalign treatment, your insurance covers half the cost, and you pay the rest, you may count your out-of-pocket costs toward the medical deduction.
Medical and Dental Expense Minimums
The medical and dental expenses tax deduction allows only for a deduction of costs in excess of a specified percentage of your adjusted gross income. You may, however, combine all qualifying deductible expenses to meet the threshold.
It’s important to note that in order to write-off dental and other medical expenses, you must itemize your deductions. Depending on your income level and other factors, the potential downside of itemizing is that you won’t be able to claim the standard deduction; unless your medical and expenses deduction, in addition to other itemized deductions, exceeds the standard deduction, writing off your dental and medical costs won’t help you on your taxes.
What’s Not Covered?
Treatments for which your insurance provider paid directly or reimbursed you may not be deducted. Nor can dental or medical expenses paid from a health savings account (HSA), which is already not subject to taxation.
When it comes to dental procedures, only those that relate to the prevention or treatment of oral health conditions qualify. Cosmetic dentistry procedures such as teeth whitening and porcelain veneers may not be deducted.
If you’re seeking a knowledgeable, compassionate Colorado Springs dentist, please contact The Studio for Exceptional Dentistry or call our office at 709-602-2614 to schedule your appointment with Dr. Andrew Hall.