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If you itemize your deductions on your personal tax return, you may be able to take a deduction for medical expenses you paid during the year. The catch is that you can only deduct the expenses that exceed 7.5% of your adjusted gross income. You probably won't get over that threshold unless your income was very low and/or your medical expenses were very high.

What medical expenses are deductible? Typically the normal medical expenses we all think of are deductible: doctor visits, hospital stays, dentist visits, prescriptions, normal medical procedures, ambulance services, physical therapy, eyeglasses, and the like.

What's not deductible? More unusual items, such as elective cosmetic surgery, illegal drugs, dancing lessons, hair removal, hair transplants, and health club dues.

The IRS has a lengthy list of items that it specifically defines as deductible and not deductible in Publication 502.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

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TurboTax Articles

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The total amount of tax you pay reaches far beyond what you owe the federal government. Depending on where you live, most likely you're required to pay additional taxes, including property and sales tax. The disparity between the amount of tax you pay in a low-tax city and that in a high-tax city can be dramatic. Living in any of these 10 cities could save you a bundle, although the exact amount may fluctuate based on your income and lifestyle choices.

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