Could Your Dental Implants Be Tax Deductible?

When tax season approaches, many of us brace for the inevitable: sorting through receipts, filling out forms, and hoping to maximize our returns. It’s a time that can bring both stress and opportunity as we navigate the maze of potential deductions and credits. Amid this financial puzzle is an intriguing aspect that’s often overlooked: your medical and dental expenses, including dental implants, may be tax deductible. This benefit means that taking care of your dental health might also provide some relief during tax season.

How Dental Implants Can Be Tax Deductible

When you opt for dental implants, you’re investing in a brighter smile and possibly setting the stage for tax savings. The IRS considers dental implants and other medically necessary procedures deductible medical expenses. Here’s how you can find out if your dental implant procedure is eligible:

• Calculate your medical expenses: Dental implants are tax deductible based on the IRS’s definition of necessary medical and dental expenses. This includes costs essential for disease diagnosis, treatment, or prevention. Think of any payment you made to keep your mouth or body healthy, including your dental implants. Calculate the total medical and dental expenses you’ve paid over the year.
• Know your income: Determine your Adjust Gross Income (AGI). Your AGI is essentially what you earn minus specific IRS-approved deductions. This is your starting point for determining what tax breaks you might get.
• Calculate 7.5% of your income: The IRS says that once you spend more than 7.5% of your yearly income on qualifying medical expenses, you can start deducting those expenses from your taxes.
• Subtract for savings: If your dental implants and other medical costs exceed 7.5% of your AGI, you can subtract that extra amount from your total income when you file your taxes. This reduces your taxable income, potentially saving you money.
• Itemize to claim: To take advantage of this benefit, you must itemize your deductions on your tax form rather than claiming the standard deduction.

However, it is essential to note that only expenses NOT covered by insurance or paid for with a health savings account (HSA) qualify for this benefit.

Your Guide to Tax Deductible Dental Implants

Navigating tax deductions can become confusing, given all the numbers and rules involved. To clarify, let’s walk through an example with an adjusted gross income of $65,000.

Imagine you’ve paid for dental implants this year and are wondering how this impacts your taxes. First, remember that only the amount not covered by insurance counts. So, if your dental implants and other qualifying medical expenses for the year total $25,000, and insurance hasn’t covered any of it, this amount is your starting point.

The IRS allows you to deduct medical expenses that exceed 7.5% of your AGI, so you’ll need to calculate this threshold. For an annual income of $65,000, your threshold equals $4,875 (.075 x 65,000).

Next, subtract this threshold from your total qualifying expenses to determine what you can deduct. With $25,000 in total medical and dental costs, subtracting the $4,875 threshold leaves you with $20,125 that could be deducted from your taxable income.

How Else Can I Make Dental Implants More Affordable?

Understanding how to navigate the financial aspects of healthcare can significantly impact the affordability of necessary treatments like dental implants. For example, a Health Savings Account (HSA) provides a proactive way to save for medical expenses with pre-tax dollars. An HSA is offered with high-deductible health plans and allows you to put aside money for qualified medical expenses, including dental implants.

Paying for dental implants with HSA funds allows you to use tax-free money to pay for your treatment costs. However, any expense paid for with your HSA cannot be included in your itemized deductions as you’ve already received a tax benefit from your HSA.

If you have not yet received dental implants, we encourage you to consider mini implants. These alternatives to conventional implants are ideal for those looking to enhance their smile without breaking the bank. Mini implants are a more cost-effective option, primarily due to their less invasive nature. Unlike traditional implants, mini implants do not require extensive treatments like bone grafting and can often be completed in one visit. The procedure’s simplicity reduces healing time and cuts overall costs.

Cutting Costs, Not Corners: Explore Your Options With Mini Dental Implants

Dental implants can dramatically enhance your quality of life while providing potential tax benefits. If you’re contemplating dental implants or have already made this oral health investment, now is the perfect time to explore how this essential dental procedure can be a savvy financial decision. Contact us today to schedule a free consultation and learn more about affordable dental implant solutions.