Learn About Claiming Medical Expenses on Taxes

Understanding Medical Expense Deductions on Your Tax Return

Medical expenses are costs you pay for diagnosing, treating, managing, or preventing disease or injury. The IRS allows you to deduct certain medical and dental expenses if you itemize deductions on your tax return. This means instead of taking the standard deduction, you list out specific expenses that reduce your taxable income. In 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Your medical expenses must exceed 7.5% of your adjusted gross income (AGI) before you can deduct them.

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For example, if your AGI is $50,000, you would need medical expenses totaling more than $3,750 to claim any deduction. Only the amount above this threshold can be deducted. This threshold has been set at 7.5% since 2013, though it has fluctuated in the past. Understanding this calculation is crucial because many taxpayers have medical expenses but fall short of this threshold and therefore cannot benefit from this deduction.

The key to successfully claiming medical expenses is knowing which costs qualify and keeping detailed records. The IRS publishes Publication 502, which contains the official rules about medical and dental expenses. This guide covers the major categories of deductible expenses, but you should consult Publication 502 or a tax professional for questions about specific situations. Medical expense deductions are available only if you itemize your deductions, which means you should compare your total medical and other itemized deductions against the standard deduction to see which method saves you more money.

• Medical expenses must exceed 7.5% of your AGI to be deductible
• You must itemize deductions rather than take the standard deduction
• Keep receipts, invoices, and explanations of all medical expenses
• Both you and your dependents' medical expenses may count toward the total

Qualified Medical Expenses You Can Deduct

The IRS recognizes a broad range of medical expenses as deductible. These include insurance premiums for health, dental, and vision coverage, though premiums paid through a pre-tax payroll deduction cannot be deducted again. Co-pays and deductibles paid directly to doctors and hospitals count as medical expenses. Prescription medications are deductible, but over-the-counter drugs generally are not, with the exception of insulin, which can be deducted whether or not it requires a prescription.

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Dental work including cleanings, fillings, root canals, extractions, and dentures qualifies. Orthodontia for children or adults is deductible. Vision expenses such as eye exams, glasses, contact lenses, and laser eye surgery (LASIK) all count. Hearing aids and hearing tests are deductible. Mental health treatment including therapy and psychiatric care qualifies as medical expenses. Medical equipment like crutches, wheelchairs, artificial limbs, and oxygen equipment are deductible. Home modifications to accommodate a disability, such as installing ramps, widening doorways, or adding grab bars, may be partially deductible—specifically, the cost of the modification minus any increase in your home's value.

Transportation expenses to receive medical care can be deducted. You can claim either the actual cost of mileage (using the IRS standard mileage rate, which is 21 cents per mile for 2024) plus parking and tolls, or actual fuel costs. If you need a caregiver to drive you to medical appointments, their transportation costs also count. Lodging expenses of up to $50 per night are deductible if you need to travel away from home to receive medical treatment. Hospital and surgical center bills, lab fees, and X-ray costs are all deductible.

• Insurance premiums (health, dental, vision)
• Co-pays, deductibles, and coinsurance amounts
• Prescription medications and insulin
• Dental work and orthodontia
• Vision care and corrective devices
• Hearing aids and mental health treatment
• Medical equipment and home modifications
• Mileage to medical appointments at 21 cents per mile (2024)
• Hospital and surgical fees

Expenses That Don't Qualify for Deduction

Not all health-related expenses are deductible. Over-the-counter medications such as cold medicine, pain relievers, and allergy pills cannot be deducted unless they are insulin. Health club memberships and gym fees are not deductible, even if your doctor recommends exercise. Cosmetic procedures like teeth whitening, hair removal, or plastic surgery are generally not deductible. However, if cosmetic surgery is performed to correct a deformity resulting from an accident, burn, or disease, it may be deductible. Teeth whitening and cosmetic dental work are not deductible, while dental work that repairs or restores teeth to function is deductible.

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Maternity clothes are not deductible as medical expenses. Life insurance premiums cannot be deducted. Hair transplants and wigs for cosmetic purposes are not deductible, though wigs may be deductible if worn specifically for a medical condition causing hair loss. Meals and lodging during hospitalization may be deductible as part of hospital costs, but meals eaten while receiving outpatient treatment are generally not. Bottled water or special foods are not deductible unless prescribed by a doctor to treat a specific illness and not generally consumed by ordinary people.

Nonprescription drugs and medicines that don't contain controlled substances cannot be deducted. Veterinary care for service animals is not deductible as a medical expense, though the cost of the service animal itself might have other tax implications. Travel expenses for general wellness or vacations recommended by a doctor for your health are not deductible. Clarifying what doesn't count helps you avoid mistakes on your tax return and prevents claiming expenses the IRS will likely disallow.

• Over-the-counter medications (except insulin)
• Health club and gym memberships
• Cosmetic procedures and whitening
• Maternity clothes
• Life insurance premiums
• Nonprescription drugs without controlled substances
• Meals during outpatient treatment
• Wellness vacations and general health travel

Keeping Records and Documentation

The IRS requires you to keep records supporting all deductions you claim. For medical expenses, you should maintain receipts, invoices, credit card statements, and canceled checks showing the date, amount, provider name, and description of services or products purchased. If you paid in cash, get a receipt whenever possible. For ongoing treatments, keep a log showing dates of service, provider information, and amounts paid. Insurance explanation of benefits statements (EOBs) are valuable records showing what services you received and what portion you paid out of pocket.

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Create a spreadsheet or written list organizing your medical expenses by category and by month or year. Include all expenses for yourself and any dependents you claim. Keep receipts for prescriptions showing what medication was purchased. For mileage, maintain a log noting the date, destination, reason for the visit, and miles traveled. A simple notebook where you record this information immediately after each trip is acceptable. For home modifications, keep receipts and invoices showing the cost of materials and labor, plus documentation establishing that the expense was medically necessary.

The IRS typically has a three-year window to audit your tax return, though this can extend to six years if you underreport income or seven years for fraud cases. This means you should keep your documentation for at least three to seven years after filing. Digital copies of receipts stored in a cloud-based system provide backup protection. If you lose a receipt, ask your provider or medical facility for a duplicate. Insurance companies can provide documentation of premiums paid and medical services received. Banks and credit card companies maintain records of payments you made, which can serve as supporting documentation if original receipts are unavailable.

• Save all receipts, invoices, and explanations of benefits statements
• Create an organized list or spreadsheet of all medical expenses
• Record mileage details including date, destination, and miles
• Keep