The information in this article is up to date for tax year 2023 (returns filed in 2024).
Taking an unexpected trip to the doctor can really bust your budget. Depending on your insurance, you can pay up to $7,500 just to fix a broken leg. That’s the bad news. The good news is your out-of-pocket medical expenses may be deductible on your tax return.
What is the medical expense deduction?
Taxpayers are only allowed to deduct medical, dental, and pharmaceutical expenses that exceed 7.5% of their adjusted gross income (AGI). For example, if your AGI is $10,000 and your medical expenses are $1,500, you can only deduct the portion over $750. Seven and a half percent may seem like a lot, but once you factor in medical expenses for you, your spouse, and dependents, it can add up quickly.
What medical expenses are deductible?
Generally, you can deduct any medical expenses related to the diagnosis, treatment, and prevention of your illness. This includes:
- Abortion
- Acupuncture
- Alcoholism
- Ambulance
- Annual Physical Examination
- Artificial Limb
- Artificial Teeth
- Birth Control Pills
- Body Scan
- Braille Books and Magazines
- Breast Pumps and Supplies
- Breast Reconstruction Surgery
- Chiropractor
- Contact Lenses
- Crutches
- Dental Treatment
- Disabled Dependent Care Expenses
- Drug Addiction
- Eye Exam
- Eyeglasses
- Eye Surgery
- Fertility Enhancement
- Guide Dog or Other Service Animal
- Hearing Aids
- Home Care
- Home Improvements
- Hospital Services
- Insurance Premiums
- Employer-Sponsored Health Insurance Plan
- Long-term care services
- Retired public safety officers
- Health reimbursement arrangement (HRA)
- Medicare Part A
- Medicare Part B
- Medicare Part D
- Prescribed medication
- Therapy
For a full list of deductible medical expenses, check out IRS Publication 502. Please note, all bills must have been paid during the calendar year in order to count towards your limit.
What medical expenses are not deductible?
A lot of medical expenses are deductible, but not all of them. Here are some that you cannot deduct:
- Cosmetic surgery
- Electrolysis or Hair Removal
- Funeral expenses
- Hair Transplant
- Maternity Clothes
- Nonprescription Drugs and Medicines
- Nutritional Supplements
- Teeth Whitening
What is the medical mileage rate?
When it comes to qualified expenses, you’re not limited to the figure on your doctor’s bill. Any money spent on transportation to and from your appointment may also be deductible. This includes the cost of taking a cab, public transportation, or an ambulance.
If you prefer to chauffeur yourself, you may be able to claim a medical mileage deduction. For 2023, the medical mileage rate is 22 cents a mile. Gas, tolls, and parking are also deductible medical expenses.
How do I claim the medical expense deduction?
To deduct your medical expenses, you must itemize and use Schedule A to calculate your deduction. This means you can’t take the standard deduction. So it’s best to only take the itemized deductions if they exceed your standard deduction.
Not sure where to start? Don’t worry! When you do your taxes with ezTaxReturn, we’ll walk you through all of the steps and handle all of the math. We make it ez to file an accurate return.
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The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
