As health insurance premiums and out-of-pocket healthcare costs continue to rise in the U.S., many taxpayers wonder whether they can offset some of these medical expenses through tax deductions. As with many tax-related questions, the answer is: it depends.
What Medical Expenses Qualify?
The IRS allows taxpayers to deduct qualified, unreimbursed medical expenses paid during the current tax year for themselves, their spouse, and their dependents. Qualifying expenses include:
- Preventive care
- Non-elective surgery
- Dental and vision care
- Prescription medications
- Medicare premiums
- Tax-qualified long-term care insurance premiums
- Travel expenses for qualified medical care
- Nursing home and assisted living expenses: fully deductible if the primary reason for being there is medical care. If it is for personal reasons, only the cost of medical care is deductible (not room and board).
A full list of qualifying expenses can be found in IRS Publication 502.
Important note: Medical expenses paid using funds from a Health Savings Account (HSA) or Flexible Spending Account (FSA) are not deductible, as those funds are already tax-advantaged. Nor are insurance premiums paid through employer-sponsored health insurance plans.
Before medical expenses can be deducted, however, taxpayers must overcome two key hurdles.
Hurdle 1: Standard Deduction vs. Itemized Deductions
Taxpayers must determine whether they will take the standard deduction or itemize their deductions. For 2026, the standard deduction amounts are:
Married Filing Jointly
- $32,200
- Senior (age 65+): Add $1,650 per spouse over 65
Single or Married Filing Separately
- $16,100
- Senior (age 65+): Add $2,050
Head of Household
- $24,150
- Senior (age 65+): Add $2,050
To benefit from itemizing, your total itemized deductions must exceed the applicable standard deduction.
Under current tax law, the four primary itemized deduction categories are:
- State and Local Taxes (SALT): Includes state income taxes, real estate taxes, and personal property taxes, subject to applicable limits based on income.
- Mortgage Interest: Interest paid on up to $750,000 of loan value for primary and secondary residences (excluding rental properties).
- Charitable Contributions: Cash, property, or appreciated securities donated to qualified 501(c)(3) organizations.
- Medical Expenses
Hurdle 2: The 7.5% of AGI Threshold
The IRS allows taxpayers to deduct unreimbursed medical expenses only to the extent they exceed 7.5% of Adjusted Gross Income (AGI).
Example:
Consider a married couple, both aged 60, with an AGI of $150,000 and $20,000 in qualifying medical expenses.
- 7.5% of AGI: $150,000 × 7.5% = $11,250
- Deductible medical expenses: $20,000 − $11,250 = $8,750
Only $8,750 of their medical expenses would be included in itemized deductions.
Totaling Your Deductions
Using the example above, consider two scenarios:
Scenario 1:
- State and local taxes: $8,000
- Mortgage interest: $12,000
- Charitable donations: $2,000
- Deductible medical expenses: $8,750
- Total itemized deductions: $30,750
In this case, the couple would be better off taking the standard deduction of $32,200.
Scenario 2:
- State and local taxes: $15,000
- Mortgage interest: $15,000
- Charitable donations: $5,000
- Deductible medical expenses: $8,750
- Total itemized deductions: $43,750
Here, itemizing deductions would result in a greater tax benefit.
Although the medical expense deduction is the same in both scenarios, the decision to itemize depends on the total of all deductions combined.
How Do I Claim the Medical Expense Deduction?
Medical expenses are reported on Schedule A, which is used to list itemized deductions. Schedule A is filed with your tax return only if your total itemized deductions exceed the standard deduction.
While medical expenses can provide a meaningful tax benefit, they are only deductible for taxpayers who itemize and whose unreimbursed costs exceed 7.5% of their AGI. Because the standard deduction is relatively high, many taxpayers will not see a benefit unless they have substantial medical expenses combined with other itemized deductions. Reviewing your full financial picture—and running the numbers both ways—can help determine whether deducting medical expenses will reduce your tax liability.
When in doubt, consulting a tax professional can ensure you maximize available deductions while remaining compliant with IRS rules.
