Medical expenses take many forms. Some, like prescriptions, crutches, and other means of treatment are obvious medical needs. Other deductions, like wigs, might be hiding in plain sight.
Does my wig qualify as a tax write-off?
You can’t write off just any hairpiece — so there’s no need to raid your closet. However, tax law does allow you to write off one doctor-prescribed wig each year.
If you’ve lost your hair as the result of a medical condition like alopecia, or a medical treatment like chemotherapy, the law is on your side. Just make sure to have your doctor confirm and write you a formal prescription. That way, your bases are covered.
How do I write off a wig on my taxes?
A doctor-prescribed wig is considered a medical expense, making it an itemized deduction. That said, you’ll need to know if you’ll itemize or take the standard deduction.
Tax laws were overhauled in recent years, and many who previously benefited from itemizing now see greater benefit by taking the new, higher standard deduction. The threshold for medical deductions shifts again this year, so you’ll want to double-check your numbers. In 2017 and 2018, taxpayers were able to deduct unreimbursed medical expenses exceeding 7.5% of their annual gross income. That number remained unchanged for your 2019 taxes.
What does the IRS consider medical expenses?
Unreimbursed treatments, surgeries, preventive care, dental and vision care are deductible expenses. You can also write off prescriptions and medical aids (contacts, glasses, etc.) along with mental health care costs.
Don’t forget: You can also deduct expenses accrued getting to and from appointments – think mileage, public transportation costs and parking fees.
How do I claim my medical expenses?
If your itemized deductions total more than your standard deduction, use IRS Form 1040 to file, and attach Schedule A.
Here’s how to enter your medical deductions on Schedule A:
Line 1: Enter your total unreimbursed 2020 medical expenses.
That’s it. TaxAct will take care of the rest.
Not sure if you should itemize or take the standard deduction?
No problem. With TaxAct, you can run the numbers both ways, so you’ll know you got the biggest refund possible. We’ll also help you find every deduction you’re eligible for, right down to the hair on your head.