Medical expenses are not cheap and they can add up fairly quickly. You might find yourself asking: are medical expenses tax deductible?
And the short answer is yes—but only in certain cases.
This guide will walk you through who qualifies, which expenses count, and how you can file properly to get some of that money back.
Who Can Deduct Medical Expenses?
You might be wondering if you’re even eligible to claim a deduction for medical bills. The IRS allows you to deduct qualified medical expenses—but only if you meet certain rules.
First, your total unreimbursed medical expenses must be more than 7.5% of your adjusted gross income (AGI). That means if you made $40,000 last year, only the amount above $3,000 can count as a deduction.
You also need to itemize your deductions when filing your tax return. If you usually take the standard deduction, you’ll have to switch to itemizing to claim medical expenses.
You may qualify if:
- You paid for medical care for yourself, your spouse, or a dependent.
- Your medical expenses were not covered or reimbursed by insurance.
- You itemize your deductions on a Form 1040 Schedule A.
Keep in mind: if someone else can claim you as a dependent on their return, you probably can’t claim a deduction yourself.
How Much of Your Medical Expenses Are Deductible?
Not all of your medical expenses will count as a tax deduction. The IRS lets you deduct only the amount that’s more than 7.5% of your adjusted gross income (AGI).
Here’s how it works:
Let’s say your AGI is $50,000 and you had $10,000 in out-of-pocket medical expenses last year.
- First, calculate 7.5% of your AGI: that’s $3,750
- Now subtract that from your total expenses:
$10,000 – $3,750 = $6,250
That means you may be able to deduct $6,250 on your tax return—if you itemize.
If your expenses don’t go over that 7.5% mark, you can’t claim a deduction for them on your federal taxes. However, don’t give up yet—some states have lower thresholds. We’ll go over that later.
What Medical Expenses Are Tax Deductible?
You might be surprised by how many of your healthcare costs can count as tax deductions. The IRS allows you to write off a wide range of qualified medical expenses—but only the ones you paid out of pocket and weren’t reimbursed for.
Here are some common medical costs that are tax deductible:
1. Visits and Services
- Payments to doctors, surgeons, dentists, chiropractors, psychologists, and other licensed medical providers
- Hospital stays and nursing home care (if primarily for medical care)
- Acupuncture and other treatments by licensed professionals
2. Medications and Equipment
- Insulin and prescribed medications
- Hearing aids, glasses, contact lenses, crutches, wheelchairs, and other medical devices
- Guide dogs or service animals (including training and care)
3. Treatment Programs
- Addiction recovery programs
- Weight-loss programs (if recommended by a doctor to treat a condition like obesity or diabetes)
4. Insurance and Transportation
- Health insurance premiums (if not paid pre-tax by your employer)
- Long-term care insurance
- Travel costs to get medical care, including mileage, bus fare, parking, and tolls
Just remember: only the expenses paid during the tax year count, and you can’t include anything your insurance reimbursed.
What Medical Costs Are NOT Deductible?
While the IRS allows many health-related expenses, there are some common costs you can’t deduct. These are usually items that are personal, cosmetic, or not directly tied to medical care.
Here are examples of non-deductible medical expenses:
- Over-the-counter medicines (unless prescribed by a doctor)
- Cosmetic surgery (unless it’s needed after an accident or to improve a medical condition)
- Health club or gym memberships
- Vitamins or dietary supplements
- Personal care items like toothpaste, soap, or deodorant
- Nonprescription glasses or sunglasses
- Funeral or burial expenses
- Vaccinations
In general, if the expense is for general health or appearance and not to treat or manage a specific condition, it probably isn’t deductible.
How to Claim Medical Deductions on Your Taxes?
If you meet the requirements and your expenses qualify, the next step is knowing how to claim them when you file your taxes.
Here’s a simple guide to help you:
1. Keep detailed records
- Save receipts, invoices, and statements for every qualified medical expense.
- Keep proof of payment, including bank statements or credit card records.
2. Use IRS Schedule A
- You must itemize your deductions using Schedule A (Form 1040).
- Add up all your deductible expenses and enter them on the form.
3. Watch the AGI threshold
- Only include the amount above 7.5% of your AGI.
4. File with care
- Tax software often walks you through the process step by step.
- You can also work with a tax professional to make sure nothing is missed.
Claiming these expenses correctly can reduce the amount of income you’re taxed on, which may help lower your tax bill.
What If You Don’t Meet the Federal Threshold?
If your medical expenses don’t exceed 7.5% of your federal AGI, you might think you’re out of luck. But don’t give up just yet—some states have their own rules that make it easier to qualify for a deduction.
For example, New Jersey allows you to deduct medical expenses that exceed 2% of your income, which is a much lower bar than the federal rule. Other states also offer state-level deductions or credits for healthcare costs.
What you can do?
- Check your state’s tax website to see if you qualify for any local medical deductions.
- Talk to a tax professional familiar with state laws to make sure you’re not missing out.
Even if you don’t qualify federally, knowing your state’s rules could help you save.
When Does It Make Sense to Claim?
Before you go through the effort of gathering receipts and filling out forms, ask yourself: does claiming medical expenses really benefit you?
If your total itemized deductions—including medical, mortgage interest, state taxes, and charitable donations—add up to more than the standard deduction, then itemizing may be worth it.
2025 standard deduction amounts:
- $15,000 for single filers
- $30,000 for married couples filing jointly
- $22,500 for head of household
If your medical expenses (after the 7.5% AGI rule) don’t push your total itemized deductions above those amounts, it’s usually better to stick with the standard deduction.
But if you had a high medical year—like a surgery, hospital stay, or ongoing treatment—it could make a real difference.
Final Thoughts
Understanding if and when your medical expenses are tax deductible can help you get the most out of your tax return—especially after a year with high healthcare costs.
The key is knowing the rules, keeping good records, and checking whether itemizing makes sense for your situation. It may take a little extra work, but the savings can be worth it.
If you’re unsure, consider speaking with a tax advisor or using tax software to guide you. You don’t want to miss a deduction you’re entitled to.
In short, asking “are medical expenses tax deductible?” is a smart move—and now, you’ve got the answer.
Frequently Asked Questions
1. Are medical expenses tax deductible every year?
Yes, as long as you meet the IRS requirements for that tax year. Your expenses must be more than 7.5% of your AGI, and you must itemize your deductions.
2. What counts as a qualified medical expense?
Qualified expenses include out-of-pocket costs for doctor visits, hospital care, prescription medications, medical equipment, and more. See IRS Publication 502 for the full list.
3. Can I deduct my spouse’s or child’s medical bills?
Yes. You can deduct medical expenses you paid for your spouse or a dependent child, even if they don’t live with you full-time.
4. What is the AGI threshold for medical deductions?
For federal taxes, only expenses over 7.5% of your adjusted gross income (AGI) are deductible. Some states have different thresholds.
5. Can I deduct health insurance premiums?
Yes, but only if you paid them with after-tax dollars and they weren’t reimbursed by an employer or government program. Premiums paid through a pre-tax plan are not deductible.
6. Is it worth itemizing just for medical expenses?
It depends. If your total itemized deductions—including medical costs—are higher than your standard deduction, itemizing could save you money.
