Can You Deduct Medical Expenses From Taxes

Everyone · Explainer · Updated October 1, 2026 · LearnLife Editorial

What Does It Mean to Deduct Medical Expenses on Taxes?

Deducting medical expenses means using your qualified health-related costs to reduce your taxable income when filing your federal tax return. Instead of taking the standard deduction offered by the IRS, you choose to itemize deductions on Schedule A. This lets you list expenses such as doctor visits, surgeries, prescription medications, and sometimes insurance premiums that you paid out of pocket during the year and were not reimbursed by insurance or another source. Only these unreimbursed costs qualify.

For example, if you paid $3,000 out of pocket for doctor visits and prescription drugs and your insurance did not reimburse you, you can include that amount in your medical expenses for deduction purposes. However, these expenses must exceed a certain threshold based on your income to qualify. The purpose is to recognize the financial burden medical costs can have on taxpayers and provide some relief by lowering taxable income, which can lead to paying less tax or receiving a larger refund.

How Does the Medical Expense Deduction Actually Work?

The medical expense deduction has a clear calculation method tied to your adjusted gross income (AGI). First, add up all your qualified unreimbursed medical expenses for the tax year. Then calculate 7.5% of your AGI—this is your “floor” or threshold. You can only deduct the amount of medical expenses exceeding this floor.

For instance, suppose your AGI is $50,000. Seven and a half percent of $50,000 is $3,750. If your total unreimbursed medical expenses were $6,000, you subtract $3,750 from $6,000, leaving $2,250 to deduct as an itemized deduction on your tax return. This $2,250 reduces your taxable income.

To claim this deduction, you must itemize your deductions instead of taking the standard deduction. If your total itemized deductions, including medical expenses and other eligible costs, are less than the standard deduction amount, itemizing may not be worthwhile.

Example with Numbers:

• AGI: $50,000
• Medical expenses paid out of pocket: $6,000
• Threshold (7.5% of AGI): $3,750
• Deductible amount: $6,000 - $3,750 = $2,250

You would report $2,250 as a medical expense deduction on Schedule A.

Why Does the Medical Expense Deduction Matter to You?

Medical costs can be a significant portion of household expenses, especially if you face chronic health conditions, unexpected emergencies, or costly treatments. Tax deductions for medical expenses provide financial relief by lowering taxable income and potentially reducing your tax owed. This is particularly important for middle- and lower-income families who may struggle with high medical bills.

However, because of the 7.5% AGI threshold, small or routine medical expenses often do not qualify. Knowing about this deduction helps taxpayers plan their finances and medical spending. For example, if you anticipate large medical expenses, keeping detailed records and receipts throughout the year is essential to maximize your deduction.

This deduction also motivates taxpayers to carefully track all eligible costs, including less obvious expenses like transportation to medical appointments or long-term care expenses, which can add up. For families with dependents, medical expenses paid on behalf of children or elderly relatives may also be deductible if those relatives qualify as dependents.

What Medical Expenses Are Deductible?

IRS rules define which medical expenses qualify. Generally, deductible expenses include:

• Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and other medical practitioners
• Hospital services, inpatient care, and surgeries
• Prescription medications and insulin (prescribed by a doctor)
• Medical equipment such as wheelchairs, crutches, hearing aids, and eyeglasses
• Health insurance premiums in certain circumstances (such as self-employed individuals)
• Long-term care services and insurance
• Transportation costs primarily for medical care, including mileage, parking fees, and tolls
• Certain home improvements for medical reasons (e.g., wheelchair ramps)

Expenses not deductible include cosmetic surgery (unless required to improve a deformity related to a medical condition), general health items like vitamins or over-the-counter drugs, and non-prescription medicines.

Tips for Tracking Expenses:

• Keep receipts and invoices for all medical-related payments
• Maintain records of mileage if you drive to appointments—note date, purpose, and miles driven
• Save insurance statements showing what was paid or reimbursed
• Separate cosmetic or non-qualifying expenses to avoid confusion when filing

What Common Terms Are Often Confused with Medical Expense Deductions?

Medical expense deductions are often mixed up with other tax terms and benefits:

• Health Insurance Premium Deductions: Not all premiums are deductible. For example, premiums paid through employer plans are usually excluded, but self-employed individuals may deduct premiums differently. See Can You Deduct Health Insurance Premiums? for details.
• Tax Credits vs. Deductions: A deduction reduces taxable income, lowering taxes owed indirectly, while a credit reduces taxes owed directly, dollar-for-dollar. Medical expenses offer deductions, not credits.
• Copays: These are often deductible as part of medical expenses since they are out-of-pocket payments. Learn more at Can You Deduct Copays as Medical Expenses?
• Standard Deduction: If your total itemized deductions (including medical expenses) are less than the standard deduction, you should take the standard deduction instead, meaning no separate deduction for medical expenses.
• Deductibles (Insurance): A deductible is the amount you pay before insurance covers costs; it is not the same as a tax deduction but may be included as a medical expense if paid out of pocket.

Understanding these distinctions prevents errors and helps you claim the right benefits on your taxes.

How Do You Claim Medical Expense Deductions on Your Tax Return?

To claim the medical expense deduction, follow these steps carefully:

1. Gather Documentation: Collect receipts, bills, insurance statements, mileage logs, and any other proof of medical expenses paid during the tax year.
2. Calculate Total Medical Expenses: Add all qualifying unreimbursed medical costs.
3. Determine Your Adjusted Gross Income: This number appears on your Form 1040.
4. Calculate the 7.5% Threshold: Multiply your AGI by 7.5% to find the minimum amount medical expenses must exceed.
5. Subtract the Threshold From Total Medical Expenses: Only the amount above this threshold is deductible.
6. Complete IRS Schedule A: List your deductible medical expenses in the appropriate section. Schedule A allows you to itemize various deductions.
7. Compare Itemized Deductions: Check if itemizing deductions (including medical expenses) exceeds the standard deduction available for your filing status. Choose the option that results in the lowest tax.
8. File Your Tax Return: Include Schedule A with your Form 1040 when submitting your federal taxes.

If you use tax software, these steps are integrated into the program, which will prompt you to enter your expenses and income to calculate your deduction automatically. If your situation is complex or you have questions, consulting a tax professional is a good idea.

What Should You Do Next If You Want to Deduct Medical Expenses?

Start by organizing your medical expense records throughout the year. This includes invoices, receipts, insurance Explanation of Benefits (EOBs), and mileage logs for medical travel. Be diligent about separating reimbursed expenses from out-of-pocket costs, as only unreimbursed amounts qualify.

Before filing, calculate whether itemizing deductions, including your medical expenses, will lower your tax bill more than taking the standard deduction. Keep in mind that the threshold makes small expenses unlikely to qualify, so large or ongoing medical costs are where this deduction helps most.

If you expect substantial medical expenses in the future, maintain detailed records annually, as these expenses can accumulate over time. Also, explore related deductions, such as health insurance premiums for self-employed individuals or copayments, by consulting articles like Can You Deduct Copays as Medical Expenses? and Can You Deduct Health Insurance Premiums?.

Finally, review IRS publications or trusted websites during tax season to stay updated on rules or changes. If needed, consider seeking assistance from a tax expert or IRS help centers.

Frequently asked questions

Can I deduct over-the-counter medications as medical expenses?

Over-the-counter medicines are generally not deductible unless prescribed by a doctor. Prescription medications and insulin are deductible if unreimbursed.

Are dental expenses deductible as medical expenses?

Yes. Costs for dental care such as cleanings, fillings, braces, and dentures are deductible if they are unreimbursed and meet IRS guidelines.

Can I deduct medical expenses I paid for a dependent family member?

Yes, if the person qualifies as your dependent, you can include their unreimbursed medical expenses in your deduction.

What if my medical expenses don’t exceed 7.5% of my AGI?

You cannot deduct medical expenses that fall below this threshold for that tax year. Consider tracking expenses for future years or exploring other tax benefits.

Are transportation costs to medical appointments deductible?

Yes, reasonable costs such as mileage, parking fees, and tolls related to medical care are deductible as medical expenses.

Do health insurance premiums count as medical expenses?

Some premiums qualify if paid with after-tax dollars and not through employer-sponsored plans. Self-employed taxpayers often have special rules for premium deductions.