Expenses related to addiction treatment for drug and alcohol problems can be deductible medical expenses. If you or a qualified dependent accrued expenses related to alcohol or drug treatment, these may be deductible on your tax return. Qualifying addiction treatment expenses include:
- Transportation costs for AA meeting attendance (pursuant to medical advice)
- In-patient treatment costs at drug/alcohol addiction centers
- Meal and lodging costs at in-patient drug/alcohol addiction centers
But remember, medical expenses are only deductible if they are over a certain percentage of your income. Individuals 65 or older may deduct medical expenses in excess of 7.5% of their adjusted gross income (AGI) while other taxpayers may only deduct medical expenses in excess of 10% of their AGI. If you have other qualifying medical and dental expenses and treatment expenses related to addiction, the combination of these are totaled; any amount above the 7.5% or 10% threshold can be deducted.
Have questions or concerns about addiction treatment expenses, medical expenses, and your tax return? Taxation Solutions, Inc. is here in St. Louis to provide the assistance you need. We will put our 40+ years’ tax experience to work for you!