18.3.2 Medical Expense Insurance
If an insurance company reimburses the insured for medical expenses, the insured cannot deduct that amount from their federal income tax.
Treatments that can be considered deductible medical expenses include:
- prescription drugs;
- insulin;
- hospital expenses;
- physician and surgeon fees;
- nursing care;
- dental care;
- rehabilitative treatments; and
- medical insurance premiums.
Individuals who are self-employed have a different scenario. If a person is self-employed, all medical care (including premiums) is fully tax deductible. Premiums for employees who are also family members are fully deductible as well.
