Introduction
If you had high medical expenses in 2025, you might be able to deduct them on your tax return and
reduce your taxable income. The IRS allows you to deduct qualified medical expenses that exceed
7.5% of your Adjusted Gross Income (AGI) under IRC § 213.
This guide explains which medical expenses are deductible, how to calculate the deduction, and
how to claim it on your tax return.
Who Qualifies for the Medical Expense Deduction?
To qualify:
- You must itemize deductions on Schedule A (Form 1040).
- Your total qualified medical expenses must exceed 7.5% of your AGI
- Expenses must be paid for you, your spouse, or dependents.
Which Medical Expenses Are Tax-Deductible?
1. Eligible Medical Expenses (IRC § 213)
- Doctor visits, hospital stays, and surgeries
- Prescription medications and insulin
- Health insurance premiums (if paid out-of-pocket)
- Long-term care expenses
- Dental and vision care
- Hearing aids and medical equipment
- Mental health services and therapy
- Travel costs for medical treatment (mileage, lodging)
2. Non-Deductible Medical Expenses
- Over-the-counter (OTC) drugs (unless prescribed)
- Cosmetic procedures
- Gym memberships for general health
- Employer-paid health insurance premiums
Tax Forms: Schedule A (Form 1040), Form 502 (if applicable for state taxes)
How to Calculate the Medical Expense Deduction
Step 1: Determine Your AGI
Find your AGI on Line 11 of Form 1040.
Step 2: Calculate 7.5% of AGI
If your AGI = $60,000, then 7.5% of AGI = $4,500.
Only medical expenses above $4,500 are deductible.
Step 3: Subtract AGI Threshold from Total Medical Expenses
| Category | Amount ($) |
|---|---|
| Total Medical Expenses | $7,000 |
| 7.5% of AGI Threshold | $4,500 |
| Deductible Amount | $2,500 |
Step 4: Report on Schedule A (Form 1040)
Enter the deductible amount on Line 1 of Schedule A.
Step-by-Step Guide to Claiming the Deduction
1. Gather Required Documents
- Receipts and invoices for medical bills
- Health insurance statements
- Mileage logs for medical travel
2. Itemize Deductions on Schedule A (Form 1040)
- Report total medical expenses on Line 1.
- Enter 7.5% of AGI on Line 2.
- Deduct the difference on Line 3.
3. Keep Proper Records for IRS Compliance
- Retain receipts for at least 3 years in case of an audit.
- Use medical expense tracking apps for easy record-keeping.
IRS Forms & Compliance Checklist
- Form 1040 – Main tax return
- Schedule A (Form 1040) – Itemized deductions
- Form 502 – If required for state deductions
Conclusion
The medical expense deduction can help you reduce taxable income if your medical costs exceed
7.5% of AGI. To maximize tax savings, keep detailed records and file Schedule A correctly.
For expert tax planning, schedule a consultation with Anshul Goyal, CPA EA FCA, a licensed tax
professional and IRS representative.
Frequently Asked Questions (FAQs)
1. Can I deduct health insurance premiums?
Yes, if they are paid out-of-pocket and not reimbursed by an employer.
2. Can I deduct medical expenses if I take the standard deduction?
No, you must itemize deductions on Schedule A to claim medical expenses.
3. What if my medical expenses are less than 7.5% of AGI?
You cannot deduct them unless they exceed 7.5% of AGI.
4. Are dental and vision expenses deductible?
Yes, dental, vision, and hearing expenses qualify under IRC § 213.
5. Can I deduct mileage for medical travel?
Yes, the IRS allows a per-mile deduction for medical travel.
About Our CPA
Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant and an IRS Enrolled Agent (EA).
He specializes in medical tax deductions, IRS compliance, and financial planning.
Schedule a consultation today with Anshul Goyal, CPA, to maximize your tax savings!