Rising healthcare costs have led many taxpayers—especially seniors and those with chronic conditions—to explore the medical expense deduction. For 2025 and 2026, understanding the IRS threshold and eligible costs can help reduce your taxable income significantly if you itemize deductions.
🩺 What Is the Medical Expense Deduction?
The IRS medical and dental expense deduction allows taxpayers to deduct qualifying out-of-pocket healthcare costs that exceed a certain percentage of their Adjusted Gross Income (AGI). To take advantage of this deduction, you must file Form 1040 and itemize deductions using Schedule A.
📊 Medical Expense Deduction Threshold for 2025 & 2026
For both the 2025 and 2026 tax years, the threshold remains:
You can deduct only the unreimbursed medical expenses that exceed 7.5% of your AGI.
This threshold applies to all taxpayers regardless of age, thanks to a permanent change enacted in the Taxpayer Certainty and Disaster Tax Relief Act of 2020.
💡 Example: How the Threshold Works
Let’s say your AGI is $60,000 in 2025:
- 7.5% of $60,000 = $4,500
- You have $9,000 in qualifying medical expenses
- You may deduct: $9,000 – $4,500 = $4,500 on Schedule A
✅ What Medical Expenses Qualify?
The IRS allows you to deduct a wide range of unreimbursed medical expenses, including:
- Doctor visits and co-pays
- Hospital care, surgery, and nursing services
- Prescription medications and insulin
- Dental and vision care
- Hearing aids and batteries
- Medical equipment and supplies (e.g., CPAP machines, wheelchairs)
- Transportation to medical appointments (mileage, taxis, tolls)
- Long-term care services and premiums
- Mental health counseling
Note: Cosmetic procedures, general health items (e.g., vitamins), and reimbursed costs are not deductible.
🚗 Medical Travel Expenses
You may deduct mileage driven for medical reasons at the IRS standard medical mileage rate (updated annually). For 2025, this is expected to be around 23 cents per mile, but confirm the IRS published rate.
🧾 Documentation Requirements
- Receipts or bills from healthcare providers
- Prescription records
- Insurance Explanation of Benefits (EOBs)
- Mileage logs for medical travel
Tip: Keep organized records throughout the year to simplify tax-time calculations.
👵 Special Considerations for Seniors
Many seniors face higher medical costs and are more likely to benefit from this deduction if they itemize. Additionally:
- Premiums for Medicare Part B, Part D, and supplemental insurance are deductible
- Qualified long-term care premiums may be deductible (limits based on age)
- Dental work, hearing aids, and vision exams often count toward the deduction
📄 How to Claim the Medical Expense Deduction
- File Form 1040 and choose to itemize deductions
- Complete Schedule A (Itemized Deductions)
- List total unreimbursed medical expenses
- Subtract 7.5% of your AGI to determine the deductible amount
📉 When Does It Make Sense to Itemize?
Itemizing is beneficial when total deductions (medical, mortgage interest, state/local taxes, charitable contributions) exceed the standard deduction:
- Single: $14,000 (2025)
- Married Filing Jointly: $28,000
- Head of Household: $20,800
If you have significant medical bills, you may surpass these thresholds and benefit from itemizing.
🔍 People Also Ask (FAQs)
Q: Can I deduct over-the-counter drugs?
A: No, unless prescribed by a doctor. OTC medications and vitamins are generally not deductible.
Q: Are health insurance premiums deductible?
A: Yes, if paid out-of-pocket and not through a pre-tax employer plan. Medicare premiums are also deductible.
Q: Can I deduct medical expenses I paid for a parent?
A: Yes, if you claim them as a dependent or provide more than 50% of their support, even if they don’t live with you.
Q: Is there an age-based deduction threshold?
A: No. As of 2025 and 2026, the threshold is 7.5% of AGI for all taxpayers, regardless of age.
📘 Final Thoughts
If you or your family face high out-of-pocket medical costs, the medical expense deduction could provide substantial relief. Review your records early, total your eligible expenses, and consider whether itemizing could lower your taxable income.
Need help calculating your medical expense deduction? Use Schedule A calculators or consult with a tax professional to ensure you’re claiming every dollar you’re entitled to.
