Many U.S. taxpayers miss out on medical expense tax deductions beyond hospital bills and prescriptions. The IRS allows deductions for medical travel, lodging, and specialized equipment when they are directly tied to qualified care. In 2025, understanding these overlooked deductions can lower your taxable income and maximize your refund.
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The 7.5% AGI Threshold
In 2025, medical expenses are deductible only to the extent they exceed 7.5% of your Adjusted Gross Income (AGI). That means if your AGI is $80,000, you can only deduct qualifying medical expenses above $6,000.
Medical Travel Expenses
If you must travel for medical care, the IRS allows deductions for reasonable transportation costs. Examples include:
- Mileage to and from hospitals, clinics, or doctors’ offices (using the IRS-approved rate).
- Bus, train, taxi, or rideshare fares for medical visits.
- Airfare when treatment requires travel to another city or state.
Tip: Always keep mileage logs and receipts to substantiate deductions.
Lodging for Medical Care
If overnight stays are required for medical treatment away from home, you may deduct up to $50 per night per person for lodging. This includes:
- Hotel stays for the patient.
- Hotel stays for a parent or companion traveling with the patient.
Meals are not deductible, but lodging is often overlooked and can significantly increase itemized deductions.
Medical Equipment & Supplies
The IRS allows deductions for the cost of durable medical equipment and supplies necessary for treatment. Examples include:
- Wheelchairs, walkers, and crutches.
- CPAP machines and related supplies.
- Hearing aids and batteries.
- Home modifications such as ramps or stair lifts if medically required.
Keep in mind that equipment purchases must be for medical necessity, not general well-being.
Example: Combining Expenses
Imagine you travel 200 miles round trip to a cancer treatment center and stay overnight in a hotel. You can deduct mileage, the hotel stay, and medical equipment purchased for ongoing care—all once you surpass the 7.5% AGI threshold.
Recordkeeping Is Key
To successfully claim these deductions in 2025, maintain:
- Receipts for transportation, lodging, and equipment purchases.
- Doctor’s notes if equipment or travel is medically required.
- A mileage log for vehicle expenses.
Why These Deductions Matter
- Lower taxable income: Medical expenses can reduce what you owe the IRS.
- Boost refunds: Itemizers may receive larger refunds by including overlooked deductions.
- Tax planning: Tracking expenses throughout the year helps maximize deductions strategically.
Key Takeaways for 2025
- Medical expenses must exceed 7.5% of AGI to be deductible.
- Travel, lodging, and equipment expenses qualify if related to necessary medical care.
- Keep thorough records—IRS audits often focus on medical deductions.
- Combine multiple expense categories to increase your overall deduction.
