Though it

may seem like it's next to impossible to reach this

threshold, there are a variety of deductible medical

expenses that may surprise you. Expenditures such as

smoking cessation programs, the new drug Viagra, and

childbirth classes, are all deductible. For this reason,

it's wise to add up what you spent and consult with your

CPA before signing off on your tax return.

In tallying

your medical expenses, keep in mind that you're allowed

to deduct eligible medical expenses for yourself, your

spouse (if you file jointly), and your dependents. Your

dependents can include children and other relatives such

as parents, grandparents, and siblings -- as long as you

provide more than half of their support and meet certain

other provisions. Here are some other expenses to include

in your tally.

INSURANCE

PREMIUMS

All health insurance premiums should be on your list of

deductible expenses. Be sure to add in any automatic

withdrawals taken from your paycheck. Uncle Sam allows

deductions for insurance covering hospitalization,

surgery, dental care, optometrists, ophthalmologists,

prescription drugs, contact lens replacement,

acupuncturists, and membership in a cooperative health

maintenance program (HMO) or other medical associations.

Medicaid premiums, which many elderly tend to overlook,

also are deductible. Just remember, you cannot deduct

payments that have already been reimbursed by insurance.

Self-employed

individuals cannot deduct company-provided health

insurance for themselves, spouses, and dependents as a

business expense. They can,instead, deduct a portion of

their medical insurance costs as an adjustment to gross

income. However, there is a limit to this deduction. For

1999, only 60 percent of a person's insurance premiums

can be deducted as an adjustment to gross income. The

balance of the premiums must be treated as an itemized

medical expense, which is subject to the 7.5 percent

threshold. The percentage limit on premium deductions is

scheduled to increase to 100 percent in 2003.

HOME

IMPROVEMENTS

Uncle Sam allows you take a tax deduction for medically

related improvements to your home. However, the deduction

is limited to the amount that the cost of the improvement

exceeds the increase to the value of your home. For

example, if adding a swimming pool for medical purposes

costs you $15,000 to install, but increases the value of

your home by $10,000, your deduction would be limited to

$5,000. Modifications that may not be considered

improvements -- such as wheelchair ramps, custom

doorways, and special railings -- may be fully

deductible, subject to the 7.5 percent limitation.

MEDICAL

EQUIPMENT

Certain types of medical equipment, such as false teeth,

hearing aids, leg or back braces, prosthetics, and even

special mattresses, can be expensive and are not always

covered by insurance -- even when prescribed by a doctor.

As long as you meet the 7.5 percent threshold, you can

deduct the costs of these unreimbursed expenses.

TRAVEL AND

LODGING

If you are required to make routine visits to a physician

for treatment of an illness, injury, or disease, your

transportation costs can add up. Keep track of these

because Uncle Sam may help. Transportation costs to a

place where you receive medical treatment, whether you

drive, travel by cab, or take a train, bus or plane also

may be tax deductible (You may deduct 10 cents per mile

plus such expenses as parking fees and tolls).

Additionally, if your condition requires treatment from a

doctor in a hospital or a hospital-related facility,

lodging costs also may be deductible.

LONG-TERM

CARE

Qualified medical expenses also include long-term care

costs for yourself, a spouse, or dependent. These

qualifying expenses are generally for those who are

chronically ill and need diagnostic preventive,

therapeutic, and rehabilitative treatments. All such

services must be prescribed by a licensed health-care

provider.

NURSES'

WAGES

Wages paid to nurses for medical reasons are deductible.

Responsibilities such as bathing, administering

medication, and changing dressings are all considered

qualifying tax deductions. However, housecleaning and

other domestic services are not tax deductible.

MAXIMIZE

YOUR DEDUCTIONS

Remember, qualified medical expenses are deductible in

the year that they're incurred and paid. So, on your 1999

tax return, you can only deduct those expenses paid by

December 31, 1999. If you put charges on your credit card

Keep in

mind, too, that how you file also can impact your ability

to claim the medical deduction. By filing separately, the

7.5 percent floor applies to each spouse's individual

return. Therefore, if both spouses work, and one of you

has substantial medical expenses, filing separate returns

may offer one of you a medical tax deduction. CPAs

suggest calculating your taxes both ways to determine

which is most beneficial.

The GSCPA

is the premier professional organization for CPAs in the

state of Georgia. With over 9,900 members throughout the

state, the purpose of the GSCPA is to promote the study

of accountancy and applicable laws, provide continuing

professional education, maintain high ethical and work

standards, and provide information about accounting

issues to the membership and the public. For more

information, access our web site at www.gscpa.org