Can You Deduct Medical Expenses on Your Taxes?
Chad Dickinson • February 12, 2025
Here’s What You Need to Know!
Want to save money on your taxes? If you’ve had significant out-of-pocket medical expenses, you may be eligible for a tax deduction—but only if you meet specific IRS requirements.
In this guide, we’ll break down which medical expenses qualify for deductions, what doesn’t, and how to properly claim them on your tax return.
Watch the video below for a quick explanation:
Who Can Deduct Medical Expenses?
The IRS allows you to deduct unreimbursed medical expenses if they exceed 7.5% of your Adjusted Gross Income (AGI).
For example:
- If your AGI is $100,000, only medical expenses over $7,500 are deductible.
If you don’t reach this threshold, it won’t benefit you to claim medical expenses on your tax return.
What Medical Expenses Are Deductible?
The IRS permits deductions for a wide range of necessary medical expenses, including:
- Preventative care, treatments, and surgeries
- Prescription medications
- Mental health services (therapy, psychiatric care, etc.)
- Dental & vision expenses (glasses, contacts, hearing aids, etc.)
- Long-term care & caregiving costs
- Medical-related travel expenses (mileage, lodging, etc.)
What Medical Expenses Are NOT Deductible?
Some common medical expenses do not qualify, including:
- Expenses covered by insurance, FSA, or HSA
- Cosmetic procedures (unless medically necessary)
- Non-prescription drugs (except insulin)
General health expenses (toothpaste, gym memberships, diet foods)
How to Track Your Medical Expenses for Tax Deductions
Staying organized is key! Follow these steps to maximize your deductions:
- Keep a folder for all out-of-pocket medical receipts.
- Track your payments throughout the year to monitor your total expenses.
- Review your year-end total to see if you exceed the 7.5% AGI threshold.
Need Help with Your Taxes?
Navigating tax deductions can be complicated, but you don’t have to do it alone! At Arch Tax, we specialize in helping individuals and businesses maximize their tax savings.
Some tax problems require more than basic tax help. Learn when a tax attorney may be the better choice for serious IRS issues.
Learn how incarceration can affect filing status, taxable income, tax credits, refunds, and IRS forms when a spouse or dependent is in jail or prison.
What happens if you don’t file your taxes? Learn how the IRS handles unfiled returns, the penalties you may face, and why filing on time can save you money and stress.
Learn how to quickly spot a fake IRS notice, avoid scams, and protect your money and personal information before it’s too late.
Waiting on your tax refund? Learn how to check your refund status, track updates, and avoid common delays with simple IRS tools.
Missed the tax deadline? Learn what steps to take now to file, reduce penalties, explore payment options, and protect your refund before it’s too late.
Still haven’t filed your taxes? Learn your last-minute filing options, free resources, and how to avoid costly mistakes before the April 15 deadline.
Worried about an IRS audit in retirement? Learn the most common audit triggers for retirees, including RMD mistakes, unreported income, and high investment earnings.
Missing a W-2 or 1099? Learn how to handle missing tax documents, avoid filing mistakes, and stay compliant with IRS guidelines.
Don’t miss your share of $1.2 billion in unclaimed IRS refunds. Find out how to claim your 2022 tax refund before the April 15 deadline.
