You can only deduct medical expenses if you itemize deductions, as opposed to standard deductions. Only medical expenses in excess of 10% of your adjusted gross income (AGI) are deductible. Medical expenses are deductible in the year paid, regardless of when the expenses were incurred. For example, you had a surgery in 2013 but you paid it in 2014, the medical expenses are deductible in 2014, the year paid. An exception to this this is credit card charge. The medical expense is deductible when the credit card was charge, not when the credit card company is paid.

Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body.  Examples are payments of fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners. You may deduct payments for in-patient hospital care or nursing home services, including the cost of meals and lodging charged by the hospital or nursing home. There are more medical expenses that can be deducted.  Check IRS Publication 502.

Examples of expenses that are not deductible are funeral or burial expenses, most cosmetic surgeries, over-the-counter medicines, toothpaste, toiletries, cosmetics, or program for the general improvement of your health. You may not deduct amounts paid for nicotine gum and nicotine patches, which do not require a prescription. Check IRS Publication 502 for more details.

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