Can You Deduct Medical Expenses? Here Are the Rules
Healthcare and related costs can add up fast. If you pay out-of-pocket for medical or dental care, and meet certain thresholds, you may be able to deduct part of those expenses on your federal tax return. This guide covers the latest rules, what qualifies, how to calculate deductions, and practical tips to help you determine whether itemizing makes sense.
Who Can Deduct?
You can deduct unreimbursed medical and dental expenses for yourself, your spouse, and your dependents. To claim medical deductions, you must itemize deductions on Schedule A (Form 1040).
Qualifying expenses are quite broad and include many common and sometimes lesser-known categories. Some examples:
Doctor and dentist visits, surgeries, hospital stays, and related treatments
Prescription medications and medical device appliances
Dental and vision care, mental health services
Travel medical care, including mileage, parking, bus or taxi fares if the travel is primarily for, and essential to, receiving medical treatment.
Other qualifying expenses under IRS guidelines as laid out in IRS Publication 502.
Note: Expenses that are reimbursed (for example by insurance, a Health Savings Account (HSA), Flexible Spending Account (FSA), or another plan) are not deductible.
Standard Deduction Amounts for 2025 and 2026
*Plus an additional standard deduction amount for those age 65 and over and/or blind taxpayers
Your tax advisor can help determine whether it makes more sense for you to itemize or claim the standard deduction. For some taxpayers, it may be advantageous to "bunch" itemizable deductions in alternating years and then take the standard deduction in between.
How to Calculate the Deduction
Add up all qualifying out-of-pocket medical and dental expenses paid during the tax year.
Compute 7.5% of your AGI.
Subtract that 7.5%-of-AGI threshold from your total medical expenses. Only the excess amount is deductible.
Include the deductible portion on Schedule A (itemized deductions) but only if your total itemized deductions exceed the standard deduction for your filing status.
Example: If your AGI is $50,000, 7.5% is $3,750. If total eligible medical expenses are $10,000, you could deduct $6,250 ($10,000 minus $3,750), provided you itemize.
Why the AGI Threshold Matters
The threshold for deducting medical expenses has changed over time.
While at one point the threshold was 10%, legislative changes restored and extended the 7.5% AGI floor allowing more taxpayers the opportunity to claim deductions when they face high medical bills.
Because of that threshold and the requirement to itemize, many taxpayers will not benefit from the medical-expense deduction in typical years. However, for those who have unusually high costs due to illness, injury, chronic conditions, or major treatments, the deduction can offer meaningful relief.
Tips to Maximize Deduction
Keep meticulous records. Save receipts, bills, statements for doctor visits, prescription medications, dental/vision care, medical devices, and travel for medical care. Documentation is essential.
Include expenses for dependents. You may deduct qualifying costs for your spouse, dependents, and other eligible family members under IRS rules.
Check reimbursement and benefit sources. If costs were reimbursed through insurance, HSA/FSA, or other health plans, they cannot be counted toward the deduction.
Weigh itemizing vs. standard deduction. Because the deduction only applies to expenses beyond 7.5% of AGI and only if you itemize you’ll want to compare the total of all itemized deductions (including medical, mortgage interest, state/local taxes, charitable gifts, etc.) against the standard deduction for your filing status to see what’s most beneficial.
Consider timing. If you anticipate exceeding the 7.5% threshold, you might try to cluster or accelerate predictable medical expenses (necessary procedures, dental/vision costs, prescriptions) into one tax year but only if medically appropriate.
Eligible Expenses
For itemized deduction purposes, medical care is defined as "procedures and care for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body." IRS regulations further stipulate that medical care includes medical, laboratory, surgical, dental, and other diagnostic and healing services. Care that's merely beneficial to your general health isn't medical care.
A wide range of medical costs are tax deductible. Examples of expenses that qualify as medical care include:
Acupuncture,
Artificial teeth,
Vehicle accommodations (cost of special equipment so disabled person can drive),
Chiropractic services,
Dental care,
Diagnostic devices,
Eyeglasses,
Hearing aids,
Home improvements for medical purposes (to the extent they don't add to the value of your home),
Insurance premiums for health coverage, including age-based premiums for qualified long-term care insurance,
Laboratory fees,
Long-term care services,
Meals (while staying in hospital or similar facility),
Medicare insurance premiums,
Nursing home expenses,
Optometrist services,
Psychiatric care,
Stop-smoking program,
Weight-loss program (if part of treatment for specific disease or condition, such as obesity),
A portion of the fees paid to enter and reside in a continuing care retirement community can qualify as medical expenses for medical expense itemized deduction purposes. These fees can be substantial — so they can easily push you over the percent-of-AGI deduction threshold.
Who Benefits Most and When It’s Worth Doing
The medical-expense deduction tends to benefit taxpayers who:
Incur high out-of-pocket medical or dental costs (particularly for major treatments, surgeries, or chronic conditions).
Have relatively low to moderate AGI since the deduction threshold (7.5% of AGI) is lower in absolute dollar terms.
Have other itemizable deductions, making itemizing more attractive than taking the standard deduction.
For many others, the combination of the AGI threshold and the relatively high standard deduction means the benefit is limited. Still, for those with substantial medically necessary expenses, the deduction remains valuable and often overlooked opportunity.
For More Information
Did you spend enough on medical care to qualify for this tax break this year? If so, your Porte Brown tax advisor can help you compile a comprehensive list of eligible expenses and brainstorm strategies to maximize your itemized deduction for medical expenses.
