Sales Tax on Medical Costs

I will be deducting sales tax since my state doesn't charge income tax.

I'll also be itemizing medical expenses since I know they are over 7.5% of AGI.

Some of my medical expenses are charged a sales tax (ex. Contacts and solution). When I'm calculating my medical costs for the year, do I count just the subtotal (actual price of the item) and exclude the sales tax charged since sales tax is accounted for elsewhere on my return?

I guess it's not a question that's limited to medical expenses since people have, for example, business expenses they might be itemizing, but also be deducting sales tax on the same return.

Any thoughts?

KatinWA,

That is an interesting question...

If you are using actual sales taxes, then you can only deduct them once. Either as your medical/business expense or as a Schedule A sales tax deduction.

If you are using the IRS provided sales tax tables I would not worry about the sales tax on your medical/business expenses.

I find it strange that you would pay a sales tax on your contacts and contact solution.
Do you pay sales tax on asprin too?

Doesn't everyone pay sales tax on aspirin? However, aspirin can't count as a medical expense.

My state doesn't charge tax on groceries, but contact solution is not a grocery.

Are you saying that if I use actual receipts then I wouldn't count the sales tax as a medical expense as well, but if I use the IRS calculator then I could?

Doesn't everyone pay sales tax on aspirin?
My state does not charge sales tax asprin....
That isespecially nice during tax season.


However, aspirin can't count as a medical expense.
That is right, but some flexable spending accounts will let you use
your flex contributions to purchase asprin and contact solution...


My state doesn't charge tax on groceries, but contact solution is not a grocery.

Are you saying that if I use actual receipts then I wouldn't count the sales tax as a medical expense as well, but if I use the IRS calculator then I could?

No. I am saying if you use the actual sales tax you paid for your itemized deductions you can use the sales tax for your medical expenses only as a medical expense or as a sales tax deduction. If you use the IRS provided sales tax calculator/charts, to determine your sales tax itemized deduciton, you could still use the sales tax on your contact solution as a medical deduciton.