Dental work can be costly, but the IRS allows certain expenses to be deducted from your taxes under specific conditions. This guide breaks down what qualifies, how to calculate your deduction, and common mistakes to avoid.
How the Deduction Works
To deduct dental expenses, you must itemize deductions on Schedule A of Form 1040, and your total qualified medical expenses (including dental) must exceed 7.5% of your adjusted gross income (AGI). Most taxpayers don’t qualify because they take the standard deduction or their expenses remain below this threshold.
Qualifying Dental Expenses
The IRS considers only medically necessary dental treatments deductible. This means procedures that prevent or treat disease, not cosmetic enhancements. Examples include:
- Cleanings, fillings, and extractions
- Root canals, dentures, and bridges
- Orthodontic work (braces)
- Dental surgeries and implants
You can also deduct related costs like transportation, lab fees, and follow-up care.
What Doesn’t Qualify
Cosmetic procedures are not deductible. This includes teeth whitening, veneers for appearance, and cosmetic bonding. Over-the-counter items like toothpaste and floss also don’t qualify unless prescribed by a doctor.
Additionally, expenses reimbursed by insurance, health savings accounts (HSAs), or employers are not deductible.
Common Mistakes to Avoid
Many taxpayers make errors when claiming this deduction:
- Claiming cosmetic procedures: The IRS strictly enforces the medical necessity requirement.
- Forgetting the AGI threshold: Expenses below 7.5% of your AGI are not deductible.
- Not itemizing: You must itemize to claim this deduction, and it may not be worth it if your total itemized deductions don’t exceed the standard deduction.
Is Itemizing Worth It?
For most people, the standard deduction is higher, making itemizing unnecessary. However, if you have significant medical and dental expenses, itemizing may be beneficial.
Example: A family earning $120,000 has an AGI threshold of $9,000. If their dental and medical bills total $15,000, they can deduct $6,000. If they also have mortgage interest and state taxes, itemizing may save them money.
Claiming Your Deduction
To claim the deduction:
- Complete Schedule A (Itemized Deductions).
- Enter your medical and dental expenses on Line 1.
- Transfer your total deductions to Form 1040, Line 12.
- Keep copies of receipts and documentation in case of an audit.
Final Take
Dental expenses can be tax-deductible, but only if you meet specific requirements. To maximize your chances, bunch procedures into one tax year, coordinate with other medical expenses, and keep accurate records. Don’t let tax savings drive health decisions; prioritize your well-being first.
