Every time tax season comes around, it can feel like there’s nothing but stress after stress. Between trying to follow complex tax laws and worrying about what you may owe, there isn’t a lot of time to sit around and figure out how you can save. But if you received dental implant treatment during this tax year, you may be able to deduct from your taxable income! As a dental expense, dental implants may be tax deductible, but only if they meet certain conditions. To understand more, we recommend reading our blog and reaching out to a tax professional for assistance.
The Good News: Dental Implants Are Tax Deductible!
According to the IRS, you can deduct specific medical and dental expenses from your taxable income. This deduction involves subtracting the deductible amount from your taxable income, which typically lowers the amount of taxes you owe.
But this rule doesn’t just apply to dental implants. If you paid out-of-pocket expenses for yourself, a spouse, or a dependent, on a dental procedure that diagnoses, treats, or prevents an issue affecting the function of your smile, you may be able to deduct those costs. Artificial teeth, like an implant-supported crown, bridge, or denture, fall into this category.
However, to deduct the cost of your treatment, you’ll need to itemize your deductions. If you’ve only ever claimed the standard deduction, this process may be new to you. That’s where a tax expert will come in handy, helping you understand your taxes and how to file them properly.
Additionally, the payment for your dental implants can’t be covered by insurance, and must be more than 7.5% of your adjusted gross income (AGI). For example, say your AGI is $60,000. 7.5% of your AGI is around $4,500. If the price of your dental implant treatment was over $4,500, then your dental implants may be tax-deductible!
Dental Implants Aren’t Always Tax Deductible
Of course, taxes are never that simple.
To be tax deductible, your dental implants must be an unreimbursed dental expense, an itemized deduction, and their total qualifying expense must exceed 7.5% of your AGI.
Any portion of your dental implant treatment that dental insurance covers is not tax deductible. And, if you paid for your procedure through a Health Savings Account (HSA), those expenses generally aren’t deductible either. An HSA is a specific savings account that uses pre-tax money to pay for medical costs. But using an HSA already provides tax benefits, making your implant treatment ineligible for a tax deduction.
To learn if your dental implant treatment is tax deductible, we recommend contacting a tax professional. They will be able to assess your expenses and determine whether you should use the standard deduction. While itemization may require more work, it can offer significant savings!
How To Claim Your Deduction
If you want to deduct your dental implant treatment costs from your taxable income in this tax year, you’ll need to follow a few specific steps.
- Determine if you’re eligible: In order to deduct your dental implant expenses, they must be unreimbursed, an itemized deduction, and exceed 7.5% of your AGI. Make sure to follow these steps carefully, and contact a tax professional if you have any doubts about your eligibility.
- Collect necessary documents: To file your taxes, you will need receipts and documents related to your implant procedure. Invoices, payments for prescriptions, and any other costs related to your treatment that were not reimbursed by insurance may be important. If your tax return is selected for review, you’ll need this documentation.
- Itemize your deductions: Rather than using the standard deduction (which adjusts for inflation from year to year), make sure to itemize your deductions. To do so, use Schedule A (Form 1040), which allows you to list out specific itemized deductions from this tax year (including your implant treatment).
- Calculate your deductible amount: To know what you can potentially deduct from your taxable income, follow the formula. Add up all qualifying medical and dental expenses for this year, then subtract 7.5% of your AGI from this total. The remaining amount is what you may be able to deduct.
Navigating tax season is complex on its own. But trying to maximize your tax deductions can make filing your taxes even more complicated. We encourage you to seek professional tax guidance for any advice you may need to ensure your tax return is prepared properly.
Learn How To Save With Your Dental Implant Treatment
Taxes are tough, but they don’t have to be. If dental implant treatment was one of your biggest expenses in this tax year, you may qualify for a tax deduction! By itemizing your dental and medical expenses, you may be able to deduct from your taxable income, potentially lowering the amount of taxes you owe. However, there are certain qualifications you must meet. To make the most of your potential deductions, we recommend using a professional tax preparer.
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