Are Medical Expenses Tax Deductible?
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Terence Loose
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Elizabeth Constantineau
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Medical bills can be stressful, but they might offer a silver lining come tax time. Medical expenses are tax deductible — but only if you itemize and your eligible costs exceed 7.5% of your adjusted gross income. While not every health-related expense qualifies, knowing which ones do can help reduce your tax bill and ease the burden of high medical costs.
Are Medical Expenses Tax Deductible?
Yes, medical expenses are tax deductible. The IRS permits you to deduct the portion of your medical expenses that exceeds 7.5% of your adjusted gross income, or AGI.
“To take advantage of this, you must itemize your medical expense deductions on your IRS 1040,” said Danielle K. Roberts, Medicare insurance expert and co-founder of Boomer Benefits. “Make sure that the total of all itemized deductions is more than the standard deduction or it won’t benefit you.”
What Medical Expenses Can You Deduct?
The IRS allows a broad range of deductible expenses, including:
- Doctor, dentist, surgeon, chiropractor and mental health provider fees
- Prescription medications and insulin
- Medical equipment and supplies, like crutches, glasses and hearing aids
- Hospital and lab services
- Long-term care and certain premiums
- Breast pumps, wheelchairs and other medically necessary equipment
- Stop-smoking programs
- Costs of service animals
- Transportation and lodging related to medical care
For a complete list of deductible medical expenses, check IRS Publication 502.
Which Medical Expenses Are Not Deductible?
Not every expense you see as medically related is one that the IRS would agree with. You can’t deduct:
- Cosmetic surgery — unless due to a trauma or illness
- Over-the-counter medications (except insulin)
- Teeth whitening
- Diet foods
- Travel for rest or vacation
- Funeral expenses
- Medical expenses reimbursed by insurance
How To Calculate Your Medical Expense Deduction
You can use these steps to calculate your deduction:
- Determine your AGI from line 11 of Form 1040.
- Multiply your AGI by 7.5% or 0.075. That’s your threshold.
- Add up all eligible medical expenses.
- Subtract the 7.5% threshold. The remainder is your deduction.
Deduction Example
Say your AGI is $50,000. Multiply that by 7.5% to get $3,750. That’s the threshold your medical expenses must exceed.
If you had $6,500 in qualified medical expenses, you could deduct the difference — or $2,750 — if you itemize on your return.
What Are IRS Qualified Medical Expenses?
Here’s a breakdown of deductible vs. non-deductible items:
| Deductible | Not Deductible |
|---|---|
| Doctor visits | Funeral expenses |
| Prescription medications | Teeth whitening |
| Insulin | Most cosmetic procedures |
| Stop-smoking programs | Over-the-counter meds — except insulin |
| Wheelchairs and crutches | Diet foods |
| Breast pumps and nursing supplies | Travel for rest |
Other Ways To Save on Medical Expenses
Unfortunately, not everyone will be able to itemize their medical expenses. But there are other tax-advantaged options that can help you save on these costs. Here are a few to consider.
Health Savings Account
- Type of savings account where you set aside pretax funds to pay for qualifying medical costs.
- Can only contribute if you have an eligible high-deductible health plan.
- Funds roll over from year to year.
Flexible Spending Account
- An FSA uses pretax dollars for medical expenses.
- Funds must be used within the year — some exceptions apply.
Health Reimbursement Arrangement
- Funded by employers.
- Reimburses qualified expenses tax-free.
- May roll over unused amounts.
Is It Worth Claiming Medical Expenses on Taxes?
It depends on your situation. You must itemize to claim the deduction, and your expenses must exceed 7.5% of your AGI. If you don’t qualify, tax-advantaged accounts like HSAs or FSAs may offer better savings.
FAQ
Medical bills and taxes can put a big strain on your finances. Here are some of the questions people are asking as they try to get a handle on both.- What’s the 7.5% AGI rule for medical deductions?
- You can only deduct medical expenses that exceed 7.5% of your adjusted gross income. For example, if your AGI is $50,000, only expenses beyond $3,750 are deductible.
- What IRS form do I use for medical expense deductions?
- Use Schedule A (Form 1040) to itemize and report your medical expenses.
- Can I claim expenses for a dependent’s care?
- Yes. You can claim qualifying medical expenses for your spouse or dependents.
- How do I know if I should itemize?
- If your itemized deductions exceed the standard deduction, itemizing could lower your tax bill.
- Can I deduct medical insurance premiums?
- Yes. You can deduct medical insurance premiums beyond the portion your employer pays and that you pay with after-tax income.
- Is it worth claiming medical expenses on taxes?
- It can be, but it depends on your situation. Medical expenses are only deductible if they exceed 7.5% of your adjusted gross income. You’ll also need to itemize deductions, so you should compare the benefits of itemizing versus taking the standard deduction.
- What are IRS qualified medical expenses?
- Qualified medical expenses are costs associated with the diagnosis, cure, treatment or prevention of disease, as well as those incurred to affect any function of the body. This includes expenses for medical professionals, prescription drugs, hospital care and medical devices.
- What proof do I need to deduct medical expenses?
- To deduct medical expenses, you need to keep accurate records, including receipts, bills and statements from your healthcare providers. You’ll also want to maintain documentation showing proof of payment.
- Are medical supplies tax deductible?
- Yes, medical supplies are tax deductible if they are necessary for the diagnosis, cure, mitigation, treatment or prevention of disease. This includes items like crutches, hearing aids, glasses and similar medical devices.
- Are prescription copays tax deductible?
- Yes, prescription copays are tax deductible as part of your overall medical expenses. Like other medical expenses, prescription copays are deductible if they, along with other qualifying expenses, exceed 7.5% of your AGI and you itemize your deductions.
- What type of medical bills are tax deductible?
- The IRS allows you to deduct a wide range of medical bills, including fees to doctors, dentists, surgeons, psychiatrists and more. Other qualifying expenses include hospital care, prescription medications, medical equipment and certain home modifications for medical care.
- Are chiropractic visits tax deductible?
- Yes, chiropractic visits are tax deductible as long as the treatments are for medical purposes and your total medical expenses exceed 7.5% of your AGI. As with other medical expenses, you must itemize deductions to claim this.
Daria Uhlig, Cynthia Measom, Elizabeth Constantineau, Cody Bay and Michael Keenan contributed to the reporting for this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- IRS. 2024. "Definition of adjusted gross income."
- IRS. 2024. "Credits and deductions for individuals."
- IRS. 2024. "Tax Season Refund Frequently Asked Questions."
- HealthCare.gov. "Using a Flexible Spending Account (FSA)."
- TurboTax. 2024. "Are Medical Expenses Tax Deductible?"
