Medical Expense Deduction
An itemized deduction for unreimbursed medical and dental expenses that exceed 7.5% of your AGI. Qualifying expenses include doctor visits, prescriptions, insurance premiums, and more.
You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your Adjusted Gross Income as an itemized deduction on Schedule A. This includes payments to doctors, dentists, surgeons, hospital services, prescription medications, medical equipment, and health insurance premiums (if not paid with pre-tax dollars).
The 7.5% floor means most people cannot claim this deduction in a typical year. For example, if your AGI is $80,000, only medical expenses exceeding $6,000 are deductible. However, in a year with major medical events — surgery, extended hospital stays, or costly treatments — the deduction can be substantial.
Qualifying expenses also include transportation to medical care, long-term care insurance premiums (subject to age-based limits), and certain home modifications for medical reasons (like wheelchair ramps). Cosmetic procedures, over-the-counter medicines (unless prescribed), and gym memberships generally do not qualify.
Related Terms
Itemized Deduction
Specific expenses you can deduct instead of taking the standard deduction, including mortgage interest, state/local taxes (up to $10,000), charitable donations, and medical expenses.
Adjusted Gross Income (AGI)
Your gross income minus specific adjustments such as student loan interest, IRA contributions, and self-employment tax. AGI is the starting point for calculating your taxable income.
HSA (Health Savings Account)
A triple-tax-advantaged savings account for medical expenses, available with high-deductible health plans. Contributions are tax-deductible, growth is tax-free, and qualified withdrawals are tax-free.