2025 Medical Expense Tax Deductions

For the 2025 tax year, you may deduct qualified, unreimbursed medical and dental expenses that exceed 7.5% of your Adjusted Gross Income (AGI).

To claim this deduction, you must itemize deductions on IRS Schedule A instead of taking the standard deduction.

Medical Expense Tax Deduction Limits and Rules

• Threshold: Only expenses above 7.5% of your AGI are deductible. For example, if your AGI is $60,000 and you have $10,000 in qualifying medical bills, you can deduct $5,500 ($10,000 minus 7.5% of $60,000, which is $4,500).
• Itemizing: You must use Schedule A of Form 1040 to claim this deduction. It is only beneficial if your total itemized deductions (medical expenses, state and local taxes, mortgage interest, charitable contributions) exceed the standard deduction for your filing status.
• Unreimbursed Expenses: The expenses must be for medical care not reimbursed by your insurance or paid for with funds from a tax-advantaged account like a Flexible Spending Account (FSA) or Health Savings Account (HSA).
• Record Keeping: You must keep detailed records and receipts for all expenses in case of an audit.

What Expenses Are Deductible?

Deductible medical expenses are primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, and treatments affecting any part or function of the body.

Generally, payments for medical professionals, inpatient hospital care, prescription medications, and medically necessary equipment are deductible. This can include vision and dental care costs, and in some cases, health insurance premiums.

Transportation costs for medical care can also be included, with a set rate per mile driven. For a comprehensive list of eligible expenses, consult IRS Publication 502, Medical and Dental Expenses.

What Expenses Are Not Deductible?

Expenses that are for general health improvement or cosmetic purposes are typically not deductible. Examples of non-deductible expenses include over-the-counter medications, vitamins, cosmetic procedures, and gym memberships for general health.

Why Electronic Filing Is the Best Choice

If you plan to itemize medical expenses, electronic filing is recommended because it:

• Automatically calculates the 7.5% AGI threshold

• Reduces math and entry errors on Schedule A

• Helps ensure you don’t miss eligible deductions

• Speeds up IRS processing and refunds

• Makes it easier to attach direct deposit for faster refunds

Most tax software walks you step by step through medical expense entry and determines whether itemizing or taking the standard deduction gives you the better result.