How to Claim Medical Expense Deductions
Medical expenses can place a heavy financial burden on individuals and families. Fortunately, U.S. tax law allows eligible taxpayers to deduct certain medical and dental expenses, which can help reduce taxable income. Understanding how medical expense deductions work—and how to claim them correctly—can lead to meaningful tax savings.
This guide explains what qualifies, how to calculate the deduction, and how to claim medical expense deductions in compliance with IRS regulations.
What Are Medical Expense Deductions?
Under Internal Revenue Code (IRC) Section 213, taxpayers may deduct qualified medical and dental expenses that exceed a specific percentage of their adjusted gross income (AGI). According to current IRS rules, you can deduct unreimbursed medical expenses that exceed 7.5% of your AGI.
These expenses must be primarily to diagnose, treat, mitigate, or prevent disease, or to affect any structure or function of the body.
Eligible Medical Expenses
The IRS allows deductions for a wide range of medical costs, including:
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Doctor, dentist, and specialist visits
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Hospital services and surgical procedures
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Prescription medications and insulin
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Medical equipment (e.g., crutches, wheelchairs, hearing aids)
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Mental health care and therapy
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Health insurance premiums (in certain cases)
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Mileage driven for medical care
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Long-term care services
Expenses can be claimed for yourself, your spouse, or your dependents, even if the dependent does not qualify on your tax return due to income limits.
Expenses That Do Not Qualify
Not all health-related costs are deductible. Common non-deductible expenses include:
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Cosmetic procedures (unless medically necessary)
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Over-the-counter medications (without a prescription)
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General health items like vitamins or supplements
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Gym memberships or fitness programs
Understanding the difference is essential to avoid errors or IRS scrutiny.
How to Calculate the Deduction
Follow these steps to determine your medical expense deduction:
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Add up all qualifying medical expenses paid during the tax year
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Calculate 7.5% of your AGI
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Subtract the 7.5% threshold from your total expenses
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The remaining amount is your deductible medical expense
Example:
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AGI: $50,000
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7.5% of AGI: $3,750
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Medical expenses: $6,000
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Deductible amount: $2,250
How to Claim Medical Expense Deductions
To claim medical expense deductions:
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You must itemize deductions using Schedule A (Form 1040)
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Keep receipts, invoices, and mileage records
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Only claim expenses paid during the tax year (not billed)
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Do not include expenses reimbursed by insurance or an HSA/FSA
If your total itemized deductions are less than the standard deduction, itemizing may not provide a tax benefit.
Recordkeeping and IRS Compliance
The IRS requires accurate documentation to support deductions. Keep records for at least three years, including:
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Proof of payment
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Medical provider statements
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Insurance reimbursement records
Good recordkeeping protects you in the event of an audit and ensures compliance with tax law.
When to Seek Professional Help
Medical expense deductions can become complex, especially when dealing with long-term care, disability expenses, or mixed-use insurance plans. A tax professional can help ensure accuracy, maximize deductions, and reduce audit risk.
Final Thoughts
Claiming medical expense deductions can significantly reduce your tax liability when done correctly. By understanding IRS rules, tracking expenses carefully, and itemizing deductions properly, taxpayers can take full advantage of this valuable tax benefit.
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