If you are a resident of Wisconsin and paying for medical bills causes you financial burden, you should learn how to deduct medical expenses on Wisconsin taxes. Even if you have medical insurance, the state still allows medical expenses to become tax deductible. This is a great way to cut down on your medical expenses.
- The state allows medical expenses exceeding 7.5% of your gross annual income to be deductible on Wisconsin taxes. The state specifically establishes the cut-off percentage to prevent abuse of tax deduction claims among Wisconsin taxpayers who can certainly afford to pay for their medical bills while giving benefits to those who cannot afford paying for medical expenses.
- Keep an itemized list of all your medical expenses and total the amount of all the medical costs incurred. Determine your gross annual income and then multiply it by 7.5%. If your medical expenses exceed the amount corresponding to 7.5% of your gross income, the exceeding amount is the allowable medical expenses tax deduction. For instance, say your adjustable gross income is $60,000. Multiplying it by 7.5% will give you $4,500. If your total medical expenses, for instance, are $7,000, then your total tax deductible amount for medical expenses would be $2,500, which is the exceeding amount of the 7.5% of your gross income.
- There are specific medical expenses that can be tax deductible. Among them are expenses for diagnosis, treatment, cure, mitigation and prevention. Medical insurance premiums may be tax deductible, but not all of them. Medical expenses of a voluntary nature are exempt from Wisconsin tax deduction, such as cosmetic surgery. Funeral expenses, maternity clothing, hair transplants, health club dues and non-prescription drugs are among the non-deductible items.
- You cannot receive a Wisconsin tax deduction for your medical expenses without proof. You should always support your itemized tax deduction claims with receipts. Reimbursed amounts are not tax deductible. It is always wise to be prudent and keep documentation of all your medical expenses to have an eligible claim for deduction on your Wisconsin taxes.
What Others Are Reading Right Now.
Acting, comedy and strong spirits converge in Speakeasy. When host Paul F. Tompkins interviews entertainers—Key and Peele, Alison Brie, Rob Delaney, Zach Galifianakis—about all sor …
Made Man Food Shows
We all love great food—and the people who make it! Our culinary video series introduces you to the country's best chefs and experts, so you can become one yourself. Pull up a chair …