Continuing advances in breast cancer treatment may be improving the odds of survival for many cancer patients, but this advanced technology also means that the cost of treating this disease may be higher than ever. Even for those with insurance, the medical bills associated with breast cancer treatment are a significant burden.
Researchers from the Duke University Medical Center and the Dana-Farber Cancer Institute examined the costs and pegged them at about $712 per month, even those with insurance coverage. Fortunately, the IRS does allow cancer patients to deduct their medical expenses, which can help ease some of the financial burden of fighting this disease. Here we’ll take a look at how medical tax deductions work and what breast cancer patients can and can’t claim.
Deducting Medical Expenses Related to Breast Cancer
The ability to deduct medical expenses is not unique to cancer. In fact, the IRS allows taxpayers to deduct the “costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body.”
In effect, the IRS will allow you to deduct just about anything that is directly related to the treatment or diagnosis of your cancer. You can claim deductions for yourself, your spouse or a dependent.
The other criterion that must be met to deduct medical expenses is that these expenses must add up to at least 7.5 percent of gross income. However, because you must itemize your deductions, whether taking this deduction is worthwhile will depend on your expenses and how much money you earned.
For 2010 returns, the standard deduction is $5,700 for a single person, and $11,400 for a married couple filing jointly. If your itemized expenses exceed this amount and your medical expenses account for more than 7.5 percent of your gross income, you may deduct them.
Also keep in mind that if you are considering itemizing your tax return that other expenses unrelated to your cancer may be added here as well, such as donations to charity, unreimbursed job expenses and mortgage interest. These expenses will be entered on Schedule A of your tax return form.
If you are itemizing your tax return, the help of an accountant can be invaluable to ensure you file correctly and that don’t miss out on any deductions.
Breast Cancer Treatment Expenses You Can Claim
The IRS allows cancer patients to deduct a number of expenses. However, it is imperative that you keep good records of these expenses. Some examples of deductible expenses that are likely to apply to breast cancer patients include:
- Prescription drugs or prescribed drug therapy
- Breast reconstruction surgery following mastectomy
- Wigs purchased for hair loss that occurred as a result of treatment
- Diagnostic services such as mammography
- Hospital services and home care
- Physical therapy
- Insurance premiums for medical care
- Expenses incurred in traveling for treatment
- Lodging when treatment is not available nearby (This may include hospital lodging and provides a small allowance for a hotel or other similar housing)
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What Can’t Be Deducted
Despite the large number of expenses related to breast cancer that may be deducted, it’s important not to get carried away and assume that every expense related to your cancer may be added to the list. The IRS explicitly states that the deductible expense be directly related to necessary medical and dental care. As such, the following are not deductible:
- Nutritional supplements, unless they are specifically prescribed as part of your treatment
- Cosmetic procedures
- Contributions to health savings or flexible spending accounts
There is also some gray area in the tax code when it comes to alternative and experimental therapies that insurance won’t cover. If you are considering one of these avenues, you should consult the IRS about possible deductions. For details on deductible medical expenses, consult IRS Publication 502.
If you’re struggling with cancer, dealing with how to pay your medical bills can be a struggle, so don’t neglect to sniff out every possible deductible expense you may have incurred during your treatment.
