Georgia residents who incur significant medical costs may qualify for a valuable tax break. Unlike many states that follow the federal 7.5% adjusted gross income (AGI) threshold for medical expense deductions, Georgia imposes its own rules. In 2025, the state continues to require that unreimbursed medical expenses exceed 10% of AGI before any deduction is allowed. This detailed blog will help you understand how Georgia’s AGI threshold works, which expenses qualify, how to report them, and strategies to maximize your deductions.
📌 Georgia’s 10% AGI Threshold Explained
For Georgia state returns, taxpayers can deduct medical and dental expenses only if they exceed 10% of their AGI. Any portion of medical expenses at or below this threshold is not deductible. For example, with a $60,000 AGI, only expenses above $6,000 qualify for deduction—matching what state tax regulations require :contentReference[oaicite:0]{index=0}.
✅ What Qualifies as a Deductible Medical Expense?
Georgia adheres closely to the IRS definition. Eligible expenses include:
- Visits to doctors, dentists, and specialists
- Hospital stays, lab tests, surgeries
- Prescription medications and insulin
- Vision and dental services like glasses or braces
- Hearing aids and related supplies
- Long-term care and insurance premiums
- Medical equipment (wheelchairs, crutches)
- Transportation to medical appointments (mileage, tolls, parking)
Expenses paid through pre-tax accounts (HSA, FSA) or reimbursed by insurance are not eligible.
🧾 How to Calculate the Deduction
- Calculate your total unreimbursed medical expenses for the year.
- Determine 10% of your AGI (for example, $60,000 AGI × 10% = $6,000).
- Subtract the threshold from your total medical expenses.
- Only the excess amount is deductible on your Georgia return.
For instance, if you spent $8,500 in qualifying medical costs with a $60,000 AGI, your deductible amount would be $2,500.
📝 Reporting on Your Georgia Return
Georgia requires itemizing deductions on Form 500 Schedule A to claim medical expenses. On Schedule A:
- Report the full amount of unreimbursed medical expenses.
- Subtract 10% of your AGI to determine your deductible portion.
- Add this amount to other itemized deductions on Schedule A.
🧠 Strategy: Bunching and Timing
If you’re close to the 10% threshold, consider:
- Bunching expenses: Schedule elective dental work, vision exams, or elective procedures in the same calendar year to push past the AGI limit.
- Prepaying expenses: Some providers allow December payments for services rendered next year—secure these in 2025 to increase your deductible total.
- Including travel costs: Record mileage, parking, and tolls related to doctor visits.
📈 Comparing to Federal Rules
Federally, medical deductions require expenses to exceed 7.5% of AGI—more generous than Georgia’s 10%. If your unreimbursed medical costs fall between those thresholds, you may qualify for a federal deduction but not a state one. It’s crucial to calculate both to understand your total tax benefit.
🛡 Recordkeeping Tips
To support your deduction under audit, keep:
- Provider invoices and detailed receipts
- Proof of payment (bank or credit card statements)
- Insurance Explanation of Benefits (EOBs)
- Mileage logs with dates, purposes, and mileage totals
💡 Key Takeaways
- Georgia medical deductions require expenses to exceed 10% of AGI.
- Only unreimbursed expenses paid with post-tax dollars can qualify.
- Bunching and timing can help reach the threshold.
- Keep meticulous records to validate your deductions.
📅 Conclusion
Understanding and applying Georgia’s 10% AGI threshold is essential for maximizing your state-level medical expense deductions. With careful planning—grouping expenses, tracking travel, and documenting thoroughly—you can ensure you’re getting the full benefit of your healthcare spending. Always compare your state and federal results to understand your overall tax picture. When in doubt, consider consulting a tax advisor to ensure accuracy and compliance.
