Search

Are Medical Expenses Tax-Deductible? Explained

The money you spend on medical expenses is tax-deductible to a certain extent. Let’s take a look at how this works and how you can claim some of your money back. 
medical-expense
Are Medical Expenses Tax-Deductible? Explained
Medical expense tax deductions cover hospital visits, injury, health and dental premium insurance, recovery from a grave illness, wheelchairs, crutches, glasses, and contact lenses.
In this article

Medical expense tax isn’t just limited to yourself. If any of your family members or dependents are going through medical procedures with exorbitant costs, you can claim that money. You will be able to revive qualified medical expenses that cross more than 7.5% of your gross income.

These expenses include hospital visits, injury, health and dental premium insurance, recovery from a grave illness, wheelchairs, crutches, glasses, and contact lenses. The money you spend on all these is tax-deductible to a certain extent. Now, let’s take a look at how this works and how you can claim some of your money back. Check out Beem for tax filing with 100% accuracy and get the maximum refund.

What Is the Medical Expense Deduction?

When you are filing tax returns this year, you have a chance to receive some of the money back. There’s a catch here though. You can get the qualified, unreimbursed medical expenses but they have to be more than 7.5% of your last year’s adjusted gross income.

For example, say your adjusted gross income is $80,000. If your medical expenses have exceeded more than $6,000 or 7.5% of your AGI, then you are qualified for reimbursement. Let’s say you’ve spent $20,000 on medical expenses like medicines and dentures or healing a fracture wound. Out of the $20,000, you will be reimbursed with $17,000. 

What Kind of Medical Expenses Are Tax Deductible?

  • When you’re traveling to and fro from your home to the hospital, these transportation charges can also be deducted.
  • Prescription drugs and insulin.
  • Acupuncture.
  • Alcohol and drug addiction programs, smoke addiction programs, and rehab centers.
  • If your obesity has become a major health risk and your doctor has advised you to lose weight, then weight loss programs are also tax deductible.
  • The transportation and admission expenses during a seminar or press conference of a health program. 
  • Dentures, crutches, hearing aids, and wheelchairs.
  • Payments to doctors, surgeons, physicians, psychologists, and other healthcare professionals.

Other Rules for Medical Expense Deduction

  • If you are filing taxes this year, then the only medical expenses you can file are the ones you paid during the previous year or that year itself
  • If the IRS already reimbursed an expense, then you can’t include this again in your tax return 

What Can’t Be Deducted?

  • Makeup, skincare products, toiletries, and toothpaste.
  • Most cosmetic surgeries aren’t tax deductible.
  • Funeral or burial expenses.
  • Over-the-counter medicines.
  • Holidays and vacations.
  • If you’re trying to quit smoking, then only addiction programs are deductible. Nicotine patches and gums aren’t tax deductible.

Also Know About : Medical debt

How to Claim the Medical Expense Deduction

Filing medical tax returns is a time-consuming task. You have to take into account both standard deductions (the fixed amount you have to pay or taxes) and itemized deductions (the AGI amount here differs from person to person).

If your standard deduction is more than your itemized deductions, then you can opt for the former and save a lot of tax prep time. Here are some things you need to keep in mind while claiming your medical expense deduction:

  • Use Schedule A: You can do the math with the help of Schedule A and calculate how much you can save and how much you have to pay. If you don’t know how to calculate this, then there are various software calculators that will do the job for you. 
  • File taxes while keeping your relationship status in mind: If you are married, then you can claim medical tax returns separately as this will give you bigger deductions. However, this is quite a risky step to take considering you may lose other tax breaks and perks. 
  • Keep good records: The most crucial thing about filing medical tax expenses is to keep track of every penny you spend on healthcare. Whenever you buy something from the pharmacy or visit a hospital, make sure you hang onto all the bills. 
  • State thresholds for medical expense deduction: Each state has a different percentage when it comes to AGI. Some could save you a lot more money than others. You have to check the AGI threshold of the state you are living in before you file your tax returns

If you want to know all the exclusive details about medical tax expense deductions, then you can check the IRS Publication 502 official site.

Try Beem’s Tax Calculator to get a free and accurate estimate of your federal and state tax.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎
Simra Sadaf

Simra Sadaf

A lover of all things literature, Simra Sadaf does content writing for a living. When she is not writing, she is eating cakes, petting stray cats and walking on sunny beaches waiting for the sun to set.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Do Homeless People Pay Taxes
Do Homeless People Pay Taxes?
Being homeless is a complicated problem that affects a huge number of people all over the United States. Some of them pay taxes, but not all do. Here's a detailed guide to help through paying taxes for homeless people.
List of Tax Deductions for Lawn Care Business [2024]
Do Nursing Home Residents on Medicaid Need to File Income Taxes?
Do Nursing Home Residents on Medicaid Need to File Income Taxes?
Low-income people obtain health insurance through Medicaid. If you are covered under this program, you may not have to file income taxes if your income is below the filing threshold. Let's read on to know more!
game-show
Taxes on game show winnings and prizes: How much tax you have to pay?
Winning at least $600 is likely to result in a 1099-MISC tax form being sent by the awarding entity to both the winner and the IRS. If no form is received, the winner is still obligated to report the winnings value.
60000 after tax
60k a year is how much a month/week/hour after taxes?
If you earn a yearly salary of $60,000, it is crucial to know the amount of income tax you are obligated to pay. Planning ahead and determining the income tax rate on a salary of $60,000 per year can help you efficiently navigate the tax filing process. Calculating how much you owe can be a daunting task, but our blog provides a useful breakdown to help you determine the amount of tax you need to pay this year.
W2 Form 2024: Everything You Need to Know
The IRS requires employers to send their employees a copy of their W-2 form by January 31 or face penalties. Even if you have quit your job, your last employer can send you a W-2 by  January 31 or earlier, in which case the employer has 30 days to provide it.
Features
Essentials

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Get up to 20% on everyday spends

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: