Dental implants are tax-deductible medical expenses under IRS rules, provided the treatment is not cosmetic: enhancing appearance only.
However, several limitations suggest you might want to ask a better question.
You might want to ask how to deduct dental implants on your taxes to maximize the money you get back, making your treatment plan most affordable.
Consolidating expenses into a single tax year maximizes your refund because you must overcome two expense thresholds before savings begin: 7.5% of Adjusted Gross Income (AGI) and the Standard Deduction.
Find eight unique loopholes in Uncle Sam’s tax code that will make you smile.
Are Dental Implants Tax Deductible: Medical Expenses
While dental implants are tax-deductible according to IRS rules, only those patients whose eligible Schedule C expenses exceed 7.5% of Adjusted Gross Income (AGI) get extra money back when filing their return.
Tax deductions are legitimate government grants for dental implants, provided you learn the pertinent IRS rules and consolidate all eligible expenses into a single year to maximize your refund.
Payments Made
Per IRS rules explicitly stated in Publication 502, you can claim dental implants on your taxes in the year that you paid the provider, not necessarily when the prosthodontist provided treatment.
| Payment Method | Date of Record |
|---|---|
| Check | Day you mail |
| Pay-by-Phone | Date reported on the statement |
| Online Account | Date reported on the statement |
| Credit Card | Day charged to your account |
Dental implant payment plans would provide the same advantage as a credit card. The date your prosthodontist received the money from the third-party finance company counts, even though you might send checks through the mail in later years.
7.5% AGI
Patients can write off dental implants on their taxes, but only the eligible expenses above 7.5% of Adjusted Gross Income (AGI) shown on Schedule C generate any savings.
For example, consider this example of a married couple with an AGI of $100,000 (7.5% = $7,500). To simplify the illustration, assume that tooth implants are their only qualifying medical and dental expenses.
| Expense | Above 7.5% AGI | Tax Savings @ 22% | |
|---|---|---|---|
| Single Tooth | $3,500 | $0 | $0 |
| Upper Bridge | $17,500 | $10,000 | $2,200 |
| Full-Mouth | $35,000 | $25,000 | $5,500 |
As you can see, the 7.5% AGI hurdle limits savings. Find four ways to combat this restriction and keep more money in your pocket instead of Uncle Sam’s.
Seniors
Dental implants for seniors on Medicare might be more affordable by taking a tax deduction. Many older retirees pay Medicare Part B and C premiums, which they can include as eligible medical and dental expenses.
The Medicare insurance premiums bring seniors one step closer to exceeding the year’s 7.5% AGI spending threshold.
Low-Income
Free dental implant programs for low-income families are scarce but might help slightly more than by taking a tax deduction. Although meeting the 7.5% AGI expense threshold is easier, low-income households rarely benefit for at least two reasons.
- Most low-income families lack the expenses to itemize
- Renters do not pay mortgage interest
- Renters do not pay local property taxes
- The marginal tax rate is low if they qualify to itemize
Uninsured
Dental insurance with no waiting period for implants may not reduce expenses much in the short term, but the premiums might count towards the 7.5% AGI threshold.
Uninsured patients gain an immediate benefit by paying premiums for coverage. Despite the alleged feature (no waiting period), the premiums will exceed benefits in the early years – unless you derive a tax benefit.
Pre-Taxing
While dental implants might be a deductible medical expense, waiting to use Schedule C may not be ideal. Pre-tax payroll deductions do not have the 7.5% AGI threshold.
Instead, savings begin immediately, making two employee benefit programs a better option for many patients.
Flexible Spending
Flexible Spending Accounts (FSA) cover dental implants with immediate savings through pre-tax payroll deductions. However, the annual contribution limits make them better suited for single-tooth replacements.
Sign up for an FSA during open enrollment at work.
Health Savings
Health Savings Accounts (HSA) cover dental implants with immediate savings through pre-tax payroll deductions or with an entry on Form 8889.
However, while an HSA also has annual contribution limits, you can reimburse yourself in the future with tax-favored dollars, making them ideal for full-mouth replacements.
Schedule C
While dental implants are often deductible on Schedule C, you want to verify that the treatment is not cosmetic and include all eligible medical expenses to ensure that you surpass the 7.5% AGI threshold.
Not Cosmetic
IRS Publication 502 does not mention dental implants specifically but includes several statements suggesting when the IRS will deem the expenses eligible and when not.
| You Can Include | You Cannot Include |
|---|---|
| Artificial teeth | Cosmetic procedures |
| Alleviation of dental disease | Improve appearance only |
| Promote proper body function |
Please consult your Certified Public Accountant (CPA).
Other Expenses
Finally, include all eligible Schedule C medical and dental expenses to ensure you eclipse the 7.5% AGI threshold.
- Individual health & dental insurance premiums
- Unreimbursed expenses (after insurance pays claims)
- Annual deductible
- Amounts above the yearly maximum
- Charges exceeding the allowed amount (out-of-network)
- Vision care (exams, eyeglasses, contact lenses, etc.)
- Auditory care (exams, hearing aids, etc.)
- Travel and lodging costs necessary for treatment
- Prescription medications, weight loss & smoking cessation programs
No credit check dental financing extends to medical, vision, and hearing care, allowing patients to consolidate every eligible expense into one year. Remember, payment timing from the lender counts, not your monthly installments.
Are Dental Implants Tax Deductible: Itemizing
While dental implants are tax-deductible according to IRS rules, only those patients itemizing get extra money back when filing their returns. Therefore, you have a second reason to consolidate expenses in one year.
Itemized Deductions
You can claim dental implants on your taxes if your itemized deductions exceed the standard deduction. Fewer people itemize because the qualifying expenses must be exceptionally high.
- Charitable Donations
- Mortgage Interest & PMI Premiums
- State & Local Property Taxes
- $10,000 limit if married
- $5,000 limit if single
- Casualty & Theft Losses
- Unreimbursed Medical & Dental Expenses above 7.5% of AGI
Home equity loans can provide the funding needed to consolidate your dental implant expenses into a single year while increasing the mortgage interest paid during the same period. Both help you itemize.
Standard Deduction
Finally, you can claim dental implants on your taxes if your standard deduction is less than your itemized deductions. The standard deduction is a preset figure updated annually by the IRS that most people use.
| Filing Status | Standard Deduction 2023 |
|---|---|
| Married filing jointly | $25,900 |
| Qualifying Widow(er) | $25,900 |
| Head of Household | $19,400 |
| Married filing separately | $12,950 |