Medical expenses can be tax deductible in many cases, but only under specific IRS rules and usually only if you itemize your deductions instead of taking the standard deduction. In practice, you can generally deduct only qualifying, unreimbursed medical and dental expenses that are more than 7.5% of your adjusted gross income (AGI).

Quick Scoop

  • You may deduct qualifying medical and dental expenses you paid for yourself, your spouse, and your dependents if you itemize on Schedule A (Form 1040).
  • Only the portion of your unreimbursed medical expenses that exceeds 7.5% of your AGI is deductible at the federal level under current rules.
  • Common deductible expenses include doctor and dentist visits, hospital care, prescription drugs, many types of medical equipment, and medically necessary surgeries, but not most cosmetic procedures or expenses already paid with pre-tax dollars (like from an FSA).
  • You cannot deduct any amount that was reimbursed by insurance, an employer plan, HSA, or FSA; only out-of-pocket costs count.

What “tax deductible” means here

  • You must choose to itemize deductions instead of taking the standard deduction; if your total itemized deductions (including medical) are lower than the standard deduction, you get no benefit from claiming them.
  • The 7.5% AGI threshold means you first calculate 7.5% of your AGI, then only the medical expenses above that amount are deductible, not the entire total.

Example: If your AGI is 50,000 and you have 5,000 in qualifying medical expenses, 7.5% of 50,000 is 3,750, so only 1,250 is actually deductible as a medical expense itemized deduction.

Typical deductible medical expenses

  • Preventive care, diagnosis, and treatment (doctor visits, specialist care, lab tests, imaging, etc.).
  • Hospital services, nursing care, and many forms of home health care that are primarily for medical needs.
  • Prescription medicines and insulin, plus medically necessary items like eyeglasses, contact lenses, hearing aids, wheelchairs, crutches, and some service animals.
  • Certain insurance premiums you pay with after-tax dollars, including some medical and long-term care insurance, subject to IRS limits.
  • Transportation primarily for medical care, such as mileage, parking, and some travel to get to necessary treatment.

Common nondeductible expenses

  • Cosmetic surgery that is not medically necessary.
  • Health club dues, general wellness vacations, and nonprescription drugs (except insulin), unless specifically allowed by IRS rules.
  • Expenses that were reimbursed by insurance, HSA, FSA, or other tax-advantaged accounts, or paid with pre-tax dollars through your employer.

Bottom line and what to do next

  • Medical expenses are tax deductible only when they are qualifying, unreimbursed costs that exceed 7.5% of your AGI and you itemize your deductions.
  • If you expect high medical bills for the year, keep detailed records and receipts and consider speaking with a tax professional or checking the latest IRS Publication 502 (Medical and Dental Expenses) to see precisely what is allowed.

Information gathered from public forums or data available on the internet and portrayed here.