For this example, we assume an Adjusted Gross Income of $65,000 and a 25% tax bracket. For this situation, any dental treatment beyond 7.5% of Adjusted Gross Income ($4,875) should be fully tax-deductible.
If your treatment for implant or cosmetic dentistry is $50,000, then $45,125 should be fully tax deductible. By taking this deduction on your tax return, you'll receive a tax refund of roughly $11,281.
A home equity loan for the full amount of treatment ($50,000) would have a payment of roughly $430 per month (assuming a 6.15% rate for 15 years). The interest on this loan would be fully tax deductible over the loan's life. (We can recommend a mortgage lender if you like.)
If the tax refund was applied immediately to the loan and the loan was refinanced, the new payment would be approximately $329 with the interest portion of the loan being again tax deductible over its life.
By getting your care done today, not only do you start enjoying the benefits today, but you also lock in your cost in today's dollars. (The average cost for complex dental care increases 5-7% yearly!) The IRS benefit to you is significant from a tax standpoint: The IRS will literally give you $11,281 back on your taxes to benefit your health!
We can also recommend a tax advisor to help with this option.
You may also be interested in these pages:
How Uncle Sam Can Help Pay for Your New Smile (You are here)
Most People Have No Idea of Just How Important Their Teeth Are!
Why Great Teeth Are Not a "Luxury"
It's an Investment in You
How Much Will it Cost?