Medical Expense Deductions: What Medical Costs Can You Deduct on Your Taxes?

ByPFGTAX Strategy Team

Medical expenses can add up quickly, especially if you or a family member experiences a serious illness, ongoing treatment, or unexpected medical emergency. While not every healthcare expense is deductible, the IRS allows taxpayers who itemize their deductions to deduct certain qualified medical and dental expenses that exceed a specific portion of their adjusted gross income (AGI).

Understanding which expenses qualify—and keeping accurate records throughout the year—can help you maximize your tax savings.

What Is the Medical Expense Deduction?

The medical expense deduction allows eligible taxpayers to deduct qualifying unreimbursed medical and dental expenses paid for themselves, their spouse, and qualifying dependents.

To claim this deduction, you generally must:

  • Itemize deductions on Schedule A (Form 1040).
  • Have qualified medical expenses that exceed the applicable IRS threshold based on your adjusted gross income (AGI).

If you claim the standard deduction, you generally cannot also claim a medical expense deduction.

What Medical Expenses May Qualify?

The IRS allows many types of healthcare costs to be included, provided they were not reimbursed by insurance or another source.

Examples include:

  • Doctor and specialist visits
  • Hospital stays
  • Surgery
  • Prescription medications
  • Dental care
  • Vision exams and prescription glasses
  • Contact lenses
  • Hearing aids
  • Physical therapy
  • Chiropractic care (when qualifying)
  • Mental health counseling and therapy
  • Psychiatric treatment
  • Laboratory fees
  • X-rays and diagnostic testing
  • Medical equipment such as wheelchairs, crutches, walkers, CPAP machines, and blood sugar testing supplies
  • Certain medically necessary home modifications
  • Qualified nursing care
  • Long-term care services (subject to IRS rules)
  • Medical transportation and mileage
  • Ambulance services

What Expenses Usually Don’t Qualify?

Some healthcare-related costs generally are not deductible, including:

  • Cosmetic surgery performed solely to improve appearance
  • General health club or gym memberships
  • Non-prescription vitamins and supplements taken for general health
  • Over-the-counter personal care products (unless otherwise eligible under current IRS rules)
  • Funeral or burial expenses
  • Most cosmetic procedures

Always review current IRS guidance or consult a tax professional if you’re unsure whether an expense qualifies.

Can You Deduct Health Insurance Premiums?

In certain situations, yes.

Depending on your circumstances, you may be able to deduct:

  • Health insurance premiums you paid with after-tax dollars
  • Medicare premiums
  • Qualified long-term care insurance premiums (subject to limits)

If your premiums were already paid with pre-tax dollars through your employer, they generally cannot be deducted again.

Medical Travel Expenses

You may also be able to deduct certain transportation costs directly related to receiving medical care.

Examples include:

  • Mileage driven for medical appointments
  • Parking fees
  • Tolls
  • Bus fare
  • Taxi or rideshare expenses
  • Public transportation costs

Be sure to keep mileage logs and receipts to support your deduction.

Keep Good Records

Documentation is essential if you plan to claim medical expenses.

Keep copies of:

  • Medical bills
  • Pharmacy receipts
  • Insurance Explanation of Benefits (EOBs)
  • Payment confirmations
  • Mileage logs
  • Travel receipts
  • Hospital invoices
  • Records of insurance reimbursements

Good recordkeeping can make tax preparation easier and help support your deductions if questions arise later.

Common Mistakes Taxpayers Make

Many taxpayers unintentionally miss valuable deductions by:

  • Failing to save receipts.
  • Claiming expenses that were reimbursed by insurance.
  • Forgetting eligible dental or vision expenses.
  • Not tracking medical mileage.
  • Assuming all healthcare costs automatically qualify.
  • Missing the AGI threshold requirement.

A tax professional can help you determine which expenses qualify under current IRS rules.

How PFGTax Can Help

At PFGTax, we help individuals and families identify legitimate deductions that may reduce their tax liability.

Our services include:

  • Individual tax preparation
  • Deduction reviews
  • Tax planning
  • Bookkeeping services
  • IRS notice assistance
  • Year-round tax guidance

We’ll review your financial records carefully to help ensure you’re claiming every deduction you’re legally entitled to receive.

Final Thoughts

Medical expenses can place a significant financial burden on families, but qualifying medical deductions may help reduce your tax bill if you itemize your deductions.

By understanding what expenses qualify, maintaining organized records, and working with a knowledgeable tax professional, you can confidently navigate the deduction process.

If you have questions about medical expense deductions or need help preparing your tax return, PFGTax is here to help.

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