What healthcare expenses can I deduct on my Ohio tax return?
First and foremost, you can't deduct any expenses that were reimbursed to you. You also can't deduct any expenses paid for from a health savings account (HSA) or other medical savings account. These already have tax benefits for you.
So, what can you deduct for Ohio?
- Health Insurance Premiums
These are the medical, dental, and vision insurance premiums you paid during 2019.
If you were covered by an employer's healthcare plan or Medicare, you can ONLY deduct premiums that you paid out of pocket. If your employer deducted them from your wages already, you already have a tax benefit and can't deduct them on your Ohio return. The amount you can deduct is limited further based on your income.
If you were not covered by an employer's healthcare plan or Medicare, you can deduct all premiums.
If you were covered by an employer's healthcare plan or Medicare for only part of the year, you can deduct all premiums paid out of pocket when you were covered by one of those, and all premiums period when you weren't. The part you deduct from the part of the year that you were covered is limited based on your income.
- Healthcare Expenses (Other Than Premiums)
You can deduct your qualified healthcare expenses and copayments. These could be medical, dental, or vision expenses and most typical healthcare items and costs can be deducted. Ohio lets you deduct anything that is a medical expense under IRS rules (see IRS publication 502 for a full listing).
The actual amount that gets deducted is limited based on your income. If your total expenses are low you might not get to deduct much, or anything at all.
Again, remember that you can't deduct expenses that were reimbursed or paid for out of an HSA or MSA.
- Long Term Care Insurance Premiums
These are premiums paid for insurance plans covering expenses that can last over years like nursing home care, in-home care, and adult day care.
You can deduct all of these premiums.
- Medical Savings Account Contributions
These are contributions you made to a medical savings account. Note that this does NOT include health savings account (HSA) contributions. The HSA is different and those contributions have already been deducted from your Ohio income.
You can deduct any MSA contributions made up to the yearly limit, as well as any earnings on your savings, minus any withdrawals you made for a nonmedical purpose.
- Taxable Accident and Health Plan Coverage for a Dependent
This is a rare type of coverage where you've arranged with your employer to have them pay for an accident and health plan for a dependent.
If any of these amounts were included in your taxable wages, you can deduct them.