The answer isn't as simple as yes or no. If you itemize your deductions you can write-off out-of-pocket medical expenses that exceed 7.5% of your federal tax return income (4% of your Alabama tax return income).

For example, if your Federal Adjusted Gross Income is $100,000 only medical expenses in excess of $7,500 are deductible.

Federal deductible items include out-of-pocket payments for prescription medicines, medical insurance premiums, Long Term Care insurance premiums, medical travel and lodging, doctors, dentists, hospitals, lab fees, eyeglasses and contacts, plus others.

Documentation is necessary to substantiate deductions. To simplify, you may be able to request a year-end statement from your health care providers and pharmacist to verify out of pocket expenses paid.