Can I Deduct My Kids’ Braces?
Orthodontic treatment for children can be a significant financial investment, but it’s important to know that there may be ways to reduce the cost. One common question parents have is whether they can deduct their kids’ braces on their taxes. The answer depends on several factors, including the type of braces and the purpose of the treatment.
Understanding Tax Deductions for Braces
The IRS allows for certain medical expenses to be deducted on your taxes if they exceed a specific percentage of your adjusted gross income (AGI). To qualify for a deduction, the total amount of unreimbursed medical expenses that you paid during the year must be more than 7.5% of your AGI (for the tax year 2020 and 2021). This includes expenses for dental and orthodontic treatments.
Eligibility for Deduction
If your child’s braces are deemed a medical necessity, they may be eligible for a tax deduction. This typically applies to cases where the braces are prescribed by a dentist or orthodontist to correct a medical condition, such as a misaligned bite or overcrowded teeth. However, if the braces are solely for cosmetic reasons, they are not deductible.
Documentation and Reporting
To claim the deduction, you’ll need to gather certain documentation. This includes receipts for the braces treatment, a prescription from the orthodontist, and proof of payment. Be sure to keep all this information organized and readily available when preparing your taxes.
Other Options for Reducing Costs
If the tax deduction isn’t enough to cover the full cost of your child’s braces, there are other options to consider. Some orthodontists offer payment plans to spread out the cost over time. Additionally, checking with your health insurance provider may reveal coverage for orthodontic treatments, which can significantly reduce out-of-pocket expenses.
Conclusion
In conclusion, if your child’s braces are a medical necessity, you may be able to deduct the cost on your taxes. Be sure to gather the necessary documentation and consult with a tax professional to ensure you’re taking advantage of all available deductions. While the tax deduction may not cover the entire cost, it can provide some relief and help make the financial burden of braces more manageable.
