Definition

• Know how the IRS defines medical expenses. According to the IRS, payments for medical care involving the cure, mitigation, diagnosis, treatment and prevention of disease are included in the medical care category. Also, any treatment affecting a function or structure of the body falls under the medical expense category.
  
  

Keep Proof

• Organize your medical expense records and keep receipts. This needs to be an ongoing process throughout the year to avoid year-end frustration. According to the IRS, verifiable proof of your medical care expenses is required to back up your deduction claims. Set up a separate file for medical care receipts to ease your year-end tax woes.
  
  

Know Your Claiming Requirements

• You must itemize deductions. Itemize your deductions when your allowable itemized deductions are more than your standard deduction amount. Sometimes taxpayers do not qualify for the standard deduction and are required to itemize deductions.
  Your total allowable medical care expenses for the year must exceed 7.5 percent of your adjusted gross income, according to H&R Block and the IRS. Figure out your allowable deduction by using Schedule A on your Form 1040.
  
  

Know What Is Allowable

• Fees. If you paid fees to chiropractors, doctors, dentists, surgeons, psychiatrists, psychologists and Christian Science practitioners, they are allowable.
  Medical items. Payments for qualified long-term care services, nursing services, lab fees and hospital services are also deductible, according to H&R Block. Smoking cessation and weight-loss program fees are deductible if prescribed by a physician.
  Prescription items. You can deduct the cost of prescription drugs, weight-loss programs, acupuncture programs, smoking cessation programs and other items where a prescription is received.
  Insurance premiums. If you paid any insurance premiums during the year for accident and health or life insurance, you can deduct those.
  Transportation costs. You can deduct your out-of-pocket costs for essential trips to and from your medical care provider. According to H&R Block and the IRS, the actual fare you paid for transportation such as bus, taxi, ambulance or train are deductible. If you use your own vehicle, the IRS allows you to deduct either a standard mileage rate or actual out-of-pocket expenses. You also are allowed to deduct related parking fees or tolls.
  Medical items. Deductible medical expenses include the cost of items such as prescription eyeglasses, contact lenses, laser eye surgery, false teeth, hearing aids, walking aids including crutches and wheelchairs and guide dogs for the blind or deaf.
  Reimbursed expenses. Lower your medical care expenses by any amount that you were reimbursed. Simply deduct the reimbursed amount from the amount you are including in your medical care expenses. The IRS states you need to deduct any reimbursement you receive irregardless of whether it was paid directly to you, the doctor or the hospital.
  
  

Know What is Not Allowed

• Not all medical expenses are deductible, states the IRS. Payments for diet food items, nicotine gum and nicotine patches are disallowed.
  Most cosmetic surgery costs or programs for improvements to your general health are disallowed.
  Over-the-counter medicines, toothpaste, toiletries, funeral or burial expenses, health club dues and cosmetics costs are all disallowed.