Medical expenses include the costs of diagnosing, treating, mitigating, or preventing disease, and expenses for treatments affecting any part or function of the body. Dental care and medical insurance costs are also included.
Medical expenses must be primarily for medical care. Costs for general health, cosmetic purposes, or personal benefit are not deductible.
Only expenses paid during the tax year are deductible. Prepaid expenses are deductible only when the services are actually provided.
A taxpayer may deduct medical expenses paid for:
- Themself
- A spouse or dependent
- An individual who would have been a dependent except for:
- Gross income of $5,200 or more
- Filing a joint return
- The taxpayer (or spouse) being claimable as a dependent on another return
Medical expenses are deductible only to the extent they exceed 7.5% of AGI.
Employees cannot deduct medical insurance premiums paid with pre‑tax payroll deductions, as this would create a double benefit.
Deductible Medical and Dental Expenses
To the extent not reimbursed, deductible expenses include:
- Breast pumps and lactation supplies
- Vision correction surgery (e.g., LASIK)
- Eyeglasses, contacts, hearing aids, braces, crutches, wheelchairs, guide dogs (including maintenance)
- Treatment at drug or alcohol addiction centers
- Weight‑loss programs prescribed to treat a specific disease
- Smoking cessation programs and prescription medications
- Qualified long‑term care services
- Hospital care, clinic fees, lab work
- Nursing services, including employer payroll taxes
- Diagnostic tests (e.g., scans, pregnancy tests, glucose kits)
- Medical examinations, X‑rays, lab services, insulin
- Care from licensed medical professionals (doctors, dentists, chiropractors, therapists, psychologists, etc.)
- Prescription medicines and insulin
- Dental insurance premiums
- Medicare premiums (Parts B, D, and voluntary Part A if not entitled to Social Security)
- Medical insurance premiums covering hospitalization, surgery, X‑rays, prescriptions, and long‑term care (subject to limits)
Meals and Lodging
Deductible when:
- Provided by a hospital or similar institution for medical care
- Lodging away from home meets all requirements:
- Essential to medical care
- Provided by a licensed medical facility
- Not lavish
- No significant personal pleasure
- Limited to $50 per night per person (e.g., parent + child = $100 per night)
- Meals are not deductible
Nursing Home
Deductible if the primary reason for being there is medical care.
Transportation
Deductible when primarily for medical care:
- Bus, taxi, train, plane, ambulance
- Transportation for a parent accompanying a child
- Transportation for a nurse or caregiver required for travel
- Travel to visit a mentally ill dependent if recommended as part of treatment
Car Expenses
Deductible:
- Gas and oil for medical travel
- Parking and tolls
Not deductible:
- Repairs, maintenance, insurance, depreciation
Taxpayer may use the 2025 standard mileage rate of 21 cents per mile instead of actual expenses.
Capital Expenses
Deductible when the main purpose is medical care.
If the improvement increases property value:
If value does not increase, the entire cost is deductible.
Examples of fully deductible improvements:
- Ramps
- Widened doorways and hallways
- Bathroom modifications (rails, bars)
- Lowered cabinets
- Modified electrical fixtures
- Porch lifts and certain other lifts
- Modified alarms and warning systems
- Stairway modifications
- Handrails and grab bars
- Modified door hardware
- Entrance/exit modifications
- Ground grading for accessibility
Nondeductible Medical and Dental Expenses
- Diet food
- Cosmetic surgery (unless correcting deformity, injury, or disease)
- Life insurance or income protection premiums
- Medicare taxes
- Nursing care for a healthy baby
- Illegal operations or drugs
- Imported drugs not FDA‑approved
- Nonprescription medicines (except insulin)
- Travel for rest or change of environment
- Funeral, burial, cremation costs
Over‑the‑counter drugs are not deductible unless prescribed.