Are Medical Expenses Tax-Deductible?

Medical bills are deductible, but two thresholds sit between you and the deduction, and most people don’t clear the second one. Only the costs above 7.5% of your adjusted gross income count, and only if your total itemized deductions beat the standard deduction.

The honest answer for most people is that a heavy medical year still might not change their return. Here’s how to check before you gather receipts rather than after.

The 7.5% AGI threshold

According to the IRS, you can deduct medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI) on Schedule A of your 1040, lines 1 through 4. You can’t deduct all of your healthcare expenses, only the amount above the 7.5% threshold.

Finding your own line takes one calculation. If your AGI is $60,000, multiply it by 0.075: your threshold is $4,500. Anything you paid below that is yours to cover.

A deduction isn’t money back. It comes off the income you’re taxed on, so what it saves you depends on your tax rate. A $2,500 deduction at a 22% rate is about $550.

How the deduction works in practice

You can find out if the medical deduction works for you in five key steps:

1. Add up qualifying medical and dental costs
2. Subtract anything insurance paid back and anything you paid with HSA or FSA money
3. Work out 7.5% of your AGI
4. Only the amount above the threshold counts for a deduction
5. Add that to your other itemized deductions and compare the total to your standard deduction

Say your AGI is $60,000, so your threshold is $4,500. If you paid $7,000 in qualifying medical costs and none of it was reimbursed, $2,500 counts.

That $2,500 isn't a refund, and it isn't a tax credit. It becomes part of your itemized deductions (like mortgage interest, state and local taxes, and charitable gifts), and the whole amount needs to total more than the standard deduction before any of it changes your tax bill. For a single filer in 2026, that’s $16,100. With $2,500 in medical deductions, you’d need about $13,600 in other itemized deductions to get there.

If you don’t reach that total, take the standard deduction. While you had real medical costs, they just didn’t do much for your taxes this year.

If you do reach it, a deduction still isn't money back. It comes off the income you're taxed on, so what it saves you depends on your tax rate. At 22%, a $2,500 deduction is worth about $550.

What medical expenses qualify for a tax deduction

Qualifying expenses can include:

• Doctor and dentist visits
• Hospital care
• Prescription medications
• Insulin
• Medical equipment and supplies
• Diagnostic devices
• Eyeglasses and contact lenses
• Mileage to and from appointments, parking, and tolls

The IRS also allows you to claim these types of medical expenses for your spouse or qualifying dependents.

What medical expenses are not deductible

Some expenses don’t qualify. Cosmetic procedures that don’t treat a medical condition are a common example, as are over-the-counter medicines.

You also can’t deduct expenses that someone else paid or reimbursed. If your insurance company paid a medical bill, you can’t claim the portion they paid as your medical expense. The same rule applies when you use tax-free funds from an HSA or FSA.

How to claim medical expenses on your taxes

Itemizing vs. taking the standard deduction

When you’re claiming a medical expense tax deduction, consider whether it’s better to take a standard deduction or itemize.

The IRS has published the standard deductions for the 2026 tax year (the return you'll file in 2027):

What records to keep

Keep any documents that show what you paid, when you paid it, and what the expense covered. Save receipts, invoices, and prescription records.

The IRS suggests holding on to most records for at least three years after filing.

Tips to maximize your medical expense deduction

• Keep everything in one place. Receipts, invoices, prescription records, explanation-of-benefits statements — reconstructing a year of this in April is how people miss the threshold by a few hundred dollars.
• Count the travel. The 2026 standard mileage rate is 20.5 cents a mile through June 30 and 23.5 cents from July 1, thanks to a midyear increase.
• Watch the calendar. Expenses count in the year you pay them, not the year you got the care. If you're close to the 7.5% line and have elective care coming, which side of December 31 it lands on can decide whether anything is deductible at all.
• Check your insurance statements. What you actually paid is usually lower than what you were billed, and you can find that exact number on your statement.

‍If you're married, ask about filing separately. The 7.5% floor is calculated on your AGI, so the spouse with less income and most of the bills can clear it more easily. But if one of you itemizes, the other has to as well, and the rest of the math can go the wrong way. A certified public accountant or other tax professional can run the numbers for your specific situation.

Check whether you qualify for free help first. The IRS runs VITA for filers making roughly $69,000 or less, and TCE and AARP Tax-Aide for anyone 60 or older. Call 800-906-9887 to find a site. Or use the IRS’s free “Can I deduct my medical and dental expenses?” tool with your own numbers.

Bottom line

Medical costs are deductible only above 7.5% of your AGI, only if you itemize, and only if your whole itemized total beats your standard deduction. If you don't clear both, the standard deduction is still the right answer, even in a year of heavy medical bills.

Most providers don’t report your payments to the credit bureaus, and so a year of paying every medical bill on time doesn’t help your credit file. Miss a payment, however, and it can still end up with a collection agency.

The Kikoff Credit Account does get reported to Equifax, Experian, and TransUnion, with no credit check to sign up. Plans start at $5 a month.