Although most medical insurance coverages do not cover laser eye surgery, the Internal Revenue Service has some good news for you if you're considering it. You may be eligible to deduct the cost of the operation as a medical expense on your tax return. The rules outlined in IRS Publication 502 include laser eye surgery.
What Is LASIK Surgery and How Does It Work
The refractive technique LASIK, or "laser-assisted in situ keratomileuses," is most commonly performed as an outpatient operation. It's widely used to treat astigmatism, nearsightedness, and farsightedness. The cornea—the circular dome at the front of the eye—is reshaped with a laser. This improves vision by improving how the eye focuses light onto the retina at the back of the eye.Medical Expenses as Defined by the IRS
The IRS classifies LASIK surgery as "medical costs." "The costs of diagnosis, cure, mitigation, treatment, or prevention of disease, as well as the costs for therapies affecting any portion or function of the body" Payments for legal, and medical services provided by physicians, surgeons, dentists, and other medical practitioners, as well as the costs of equipment, supplies, and diagnostic gadgets required for these reasons, are included in these expenditures. As a result, LASIK surgery is a tax-deductible medical expense.To Claim Your LASIK Surgery, You Must Itemize
Suppose your LASIK surgery qualifies as both laser surgery and a medical expense. In that case, you'll need to itemize your deductions on your tax return to claim it. As a result, you won't be able to take the standard deduction because of your filing status. Over the year, add up all the money you spent on medical bills for yourself and your dependents. Add in any additional tax-deductible expenses you paid, such as charitable donations and mortgage interest. The sum would then be entered into Schedule A, which would then be attached to your tax return. Instead of the standard deduction, you'll enter the total of your Schedule A deductions on Line 11 of Form 1040. Medical Expenses are Limited Unfortunately, when calculating your total itemized deductions on Schedule A of your tax return, you may not be able to claim all your LASIK expenses. On Schedule A, you can only deduct the portion of your medical and dental expenses that exceed 7.5 percent of your adjusted gross income (AGI) (Form 1040 or 1040-SR). 2 The 7.5 percent threshold used to be 10%, but it was reduced to 7.5 percent at the end of 2019. If your AGI is $65,000, you can only deduct medical expenses that exceed $4,875 as an example. You might claim a $2,125 deduction ($7,000-$4,875) if your total medical expenses for the LASIK procedure were $7,000.Expenses Associated With It Might Be Deductible
In addition to the actual cost of the surgery, the IRS permits you to deduct various extra expenses linked to your LASIK procedure. The following are examples of deductible expenses:- Expenses are associated with getting to and from your operation. They include the cost of transportation (bus, train, or cab) and the cost of gasoline if you have someone drive you there. If you go by car, you can instead claim 16 cents per mile for the tax year 2021. 5 Food and housing at the hospital if you're compelled to stay overnight after surgery. 2
- Find out if you should itemize your expenses.
- Consult an accountant before deciding to have LASIK surgery so you can deduct the cost.
Most Commonly Asked Questions (FAQ)
Is LASIK surgery a tax-deductible medical expense? LASIK surgery is a tax-deductible medical expense. You can only deduct the portion of your surgery costs exceeding 7.5 percent of your adjusted gross income (AGI). Suppose your AGI is $6,000, and your LASIK procedure costs $2,000. In that case, you can deduct it if you don't have other itemized deductions. What is the price of LASIK surgery LASIK surgery costs vary from $1,000 to $3,000 per eye. The amount you spend out of pocket depends on where you reside, whose ophthalmologist you choose, and what your health insurance covers or does not cover.