How to Deduct Medical Expenses on Your Tax Return

Medical expenses you can deduct depend on what you paid for and whether you itemize

You can deduct medical and dental expenses on your federal tax return, but only if you itemize deductions instead of taking the standard deduction, and only if your total medical expenses exceed a threshold set by the IRS. For the 2023 tax year, you can deduct medical expenses that are more than 7.5% of your adjusted gross income (AGI). This means if your AGI is $60,000, you can only deduct medical expenses above $4,500. The IRS updates this threshold each year, so the percentage may differ for 2024 and beyond.

The expenses that count are narrower than you might think. They include insurance premiums you pay yourself (not those your employer deducts from your paycheck), prescription medications, doctor and dentist visits, hospital stays, mental health treatment, vision and hearing care, and certain medical equipment like wheelchairs or diabetic supplies. They do not include cosmetic procedures, over-the-counter medications you buy without a prescription, or gym memberships, even if your doctor recommended them for your health.

Key Takeaways

• You can only deduct medical expenses if you itemize deductions on your tax return, which means your total itemized deductions must exceed the standard deduction for your filing status.
• Medical expenses must exceed 7.5% of your adjusted gross income before any of them become deductible, so most people do not reach this threshold in a single year.
• Deductible expenses include insurance premiums you pay yourself, prescription drugs, doctor visits, hospital care, and certain medical equipment, but not over-the-counter medications or cosmetic procedures.
• You will need receipts, invoices, and proof of payment for every expense you claim, organized by category and provider.

Deciding whether to itemize or take the standard deduction

Before you spend time tracking medical expenses, you need to know whether itemizing will actually lower your taxes. The standard deduction is a flat amount the IRS lets you deduct without listing anything—for 2023, it was $13,850 for single filers and $27,700 for married couples filing jointly. If your medical expenses plus other itemized deductions (mortgage interest, property taxes, charitable donations) do not add up to more than the standard deduction, itemizing will not help you.

Many people find that medical expenses alone are not enough to push them over the standard deduction threshold. If you have a major medical event in one year—surgery, extended hospitalization, or a new chronic condition requiring ongoing treatment—that year might be the one where itemizing makes sense. In other years, you may be better off taking the standard deduction and not tracking medical expenses at all.

A tax professional or tax software can help you run both scenarios. Some people also bunch medical expenses into one year when possible (for example, scheduling elective procedures in the same calendar year as a major illness) to cross the threshold.

What counts as a deductible medical expense

The IRS has a specific list of what qualifies. Insurance premiums you pay out of your own pocket count—this includes health insurance, dental insurance, vision insurance, and long-term care insurance premiums. Copays, coinsurance, and deductibles you pay when you receive care also count. Prescription medications count, but over-the-counter drugs do not unless you have a prescription for them (which is rare).

Medical services and supplies that count include doctor visits, dentist visits, eye exams, hearing aids, prescription glasses, mental health counseling, physical therapy, hospital stays, surgery, lab tests, X-rays, and medical equipment prescribed by a doctor (like a wheelchair, crutches, or a CPAP machine). Travel to receive medical care—mileage to doctor appointments or airfare for treatment at a distant facility—can also be deducted, though you must track it carefully.

Expenses that do not count include cosmetic procedures (unless they are reconstructive after an injury or illness), over-the-counter pain relievers or cold medicine, vitamins and supplements (unless prescribed by a doctor for a specific condition), gym memberships or fitness programs, and weight-loss programs. Teeth whitening, hair transplants, and similar elective procedures are not deductible.

Organizing and documenting your medical expenses

The IRS does not require you to submit receipts with your tax return, but you must keep them if you are audited. Start now by collecting every receipt, invoice, and explanation of benefits (EOB) from your insurance company. Create a spreadsheet or folder organized by category: insurance premiums, doctor visits, dental work, prescriptions, medical equipment, and travel. Include the date, provider name, description of the service or item, and amount paid.

For insurance premiums, gather your 1099-H or other premium statements from your insurance company. For out-of-pocket medical costs, keep the receipt or invoice showing what you paid. For expenses paid through insurance, the EOB from your insurance company shows what you paid out of pocket after insurance covered its share—that is the amount you deduct, not the full bill.

If you paid for someone else's medical expenses (a spouse, child, or dependent parent), you can include those too, as long as they were your dependent for tax purposes or you can claim them under specific rules. Keep documentation showing the relationship and that you paid the bill.

Calculating your deductible medical expenses

Add up all your medical expenses for the year. Then calculate 7.5% of your adjusted gross income (AGI). Your AGI is on your tax return—it is your total income minus certain deductions like contributions to a traditional IRA or student loan interest. Subtract that 7.5% threshold from your total medical expenses. Only the amount above the threshold is deductible.

Here is a concrete example: if your AGI is $50,000, then 7.5% is $3,750. If you spent $6,000 on medical expenses during the year, you can deduct $2,250 ($6,000 minus $3,750). If you spent only $3,500, you cannot deduct any of it because it does not exceed the threshold.

This calculation only matters if you are itemizing. If your medical expenses plus other itemized deductions still do not exceed your standard deduction, you will take the standard deduction instead and get no benefit from the medical expenses.

Where to claim medical expenses on your tax return

Medical expenses go on Schedule A (Itemized Deductions) if you are filing a federal tax return. Schedule A is part of Form 1040. You will list your total medical and dental expenses on line 1, then subtract the 7.5% threshold to get your deductible amount. This deductible amount then flows to your main tax return.

If you use tax software, the program will walk you through entering medical expenses and calculate the threshold automatically. If you file by hand or work with a tax professional, they will handle this calculation. Many people find that using tax software or a professional is worth the cost when itemizing, because the software catches deductions you might miss and ensures the math is correct.

State tax returns may have different rules. Some states do not allow medical expense deductions at all, while others follow federal rules. Check your state's tax guidance or ask a tax professional about your specific state.

Frequently Asked Questions

Can I deduct medical expenses my insurance paid for?

No. You can only deduct the amount you paid out of your own pocket. If your insurance covered part of the bill, you deduct only your copay, coinsurance, or deductible—not the full amount the provider charged.

What if I had a major surgery or hospital stay that pushed me over the threshold?

That year, you may benefit from itemizing. Add up all your medical expenses for that year, subtract 7.5% of your AGI, and compare the result to your standard deduction. If the medical deduction plus other itemized deductions (mortgage interest, property taxes, charitable gifts) exceeds your standard deduction, itemizing saves you money.

Can I deduct medical expenses for my adult child or aging parent?

Yes, if they were your dependent for tax purposes during the year. You can deduct their medical expenses even if you did not claim them as a dependent for other reasons, as long as you paid the bills and they meet the IRS definition of a dependent.

Do I need to submit my receipts with my tax return?

No. The IRS does not require receipts to be attached to your return. However, you must keep them for at least three years in case you are audited. Organize them by category and date so you can find them quickly if needed.

What if my state has different medical expense rules than the federal government?

Some states do not allow medical expense deductions, while others follow federal rules or have their own thresholds. Check your state's tax website or speak with a tax professional about whether your state allows this deduction and what the rules are.