When it comes to dental expenses, many people wonder if they are eligible for tax deductions. In particular, dental crowns, which are a common dental procedure, often raise questions about their deductibility under the IRS rules. In this article, we will delve into 10 aspects related to dental crowns and their tax deductibility.
1. Understanding Dental Crowns
Dental crowns are prosthetic devices that are used to cover or encase a damaged tooth. They can restore the tooth's shape, size, strength, and improve its appearance. Crowns are typically made from various materials such as porcelain, metal, or a combination of both.
Covering a wide range of dental issues, crowns are considered a necessary treatment for many patients. However, their tax deductibility depends on several factors.
2. Medical vs. Dental Expenses
According to the IRS, expenses related to medical care are tax-deductible if they exceed a certain percentage of your income. Dental expenses, including dental crowns, fall under the category of medical expenses. To qualify for deductions, you need to itemize your deductions instead of taking the standard deduction.
For the tax year 2018, the medical expense deduction threshold is set at 7.5% of your adjusted gross income (AGI). This means that you can deduct eligible expenses that exceed 7.5% of your AGI.
3. Eligible Deductible Expenses
Not all dental expenses are eligible for tax deductions. The IRS considers expenses that are primarily for the prevention or alleviation of a dental condition as deductible. This includes dental crowns if they are necessary to treat, restore, or replace a tooth due to its deteriorated condition.
However, cosmetic dental treatments like crowns for purely aesthetic purposes are not eligible for tax deductions.
4. Qualifying Criteria for Deductibility
In order for dental crowns to be tax-deductible, they must meet the following criteria:
a) The crowns are prescribed by a qualified dentist as a necessary treatment.
b) The crowns are not for cosmetic purposes only, but for the treatment, restoration, or replacement of a tooth.
c) The total dental expenses, including crowns, exceed the 7.5% threshold of your AGI.
5. Average Cost and Price Range
The cost of dental crowns can vary depending on several factors such as the material used, the location of the dental office, and the complexity of the case. On average, a single dental crown can cost anywhere between $800 and $1,500.
It is important to note that the cost of dental crowns is influenced by market factors and can fluctuate. It is always recommended to consult with your dentist to get an accurate estimate based on your specific needs.
6. The Importance of Proper Documentation
When claiming dental expenses, including dental crowns, it is crucial to keep proper documentation. This includes invoices, receipts, and any supporting documentation from your dentist. Make sure to clearly outline the medical necessity of the crowns to substantiate your claim.
If audited by the IRS, having the necessary documentation will enable you to provide evidence and support your claim for tax deductions.
7. Alternative Expenses to Consider
If your dental expenses, including the cost of dental crowns, do not exceed the 7.5% AGI threshold, they may not be eligible for tax deductions. However, there are alternative ways to save on dental costs, such as utilizing flexible spending accounts (FSAs) or health savings accounts (HSAs) that offer pre-tax contributions for medical expenses.
These accounts allow you to set aside funds specifically for medical and dental expenses, reducing your overall tax liability. Consult with a financial advisor or tax expert to determine the best strategy for your situation.
8. Consult with a Tax Professional
Tax laws and regulations can be complex and subject to change. If you have questions or concerns regarding the deductibility of dental crowns or any other medical expenses, it is always advisable to consult with a qualified tax professional.
Seeking expert advice will ensure that you maximize your deductions within the boundaries of the IRS rules and regulations.
9. Common Questions about Dental Crown Deductions
Here are some common questions regarding the tax deductibility of dental crowns:
Q: Can I deduct dental crowns purchased for my dependent?
A: Yes, if the dependent's dental expenses, including crowns, meet the deductible criteria and exceed the 7.5% AGI threshold.
Q: Are dental implants also tax-deductible?
A: Dental implants are generally deductible if they are necessary for the treatment or replacement of a tooth. However, cosmetic implants are not eligible for deductions.
Q: Can I deduct dental insurance premiums?
A: Yes, dental premiums are considered a medical expense and can be deductible if they exceed the 7.5% AGI threshold.
10. References
IRS Website
Investopedia
American Dental Association
Nerdwallet
WebMD
Please note that this article is for informational purposes only and does not constitute professional tax advice. Consult with a qualified tax professional for personalized advice pertaining to your specific situation.
