Can I Claim Medical Expenses on My Taxes?
If you had substantial health care expenditures last year, you may be able to deduct some of them from your taxable income.
But many taxpayers miss out on this valuable tax break because they don't know which expenses are eligible or how to claim them.
Here's what you need to know to deduct eligible medical costs from your taxable income.
The IRS allows federal filers to deduct qualifying medical expenses that exceed 7.5% of their adjusted gross income (AGI). So, if your AGI was $80,000, you can deduct health costs above $6,000.
To claim the medical expenses, however, you must itemize your return rather than take the standard deduction. The standard deduction for tax year 2024 is $14,600 for a single taxpayer. So if your total deductions — including medical bills — is less than $14,600, it's not worth itemizing.
If they exceed that threshold, however, an itemized return is likely the right choice.
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Eligible medical expenses must meet certain requirements defined by the IRS.
"In general, these expenses should be used to diagnose, prevent or treat a medical condition," says Charlene Rhinehart, personal finance editor at GoodRX. They include:
Health-related items that are not eligible include:
The IRS has more details on what is allowed as a medical deduction on its website.
You can't deduct those costs if your health insurance provider reimburses you for a procedure. In essence, there's no "double dipping."
"If you go to the dentist and she charges you $250 and your insurance reimburses $250, then you can't claim that money for this deduction," explains Rhinehart. "You can only claim those out-of-pocket expenses that aren't reimbursed."
If you have a health savings account (HSA), either through work or on your own — like Lively or Health Equity — you can't itemize expenses paid out of that account.
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"If I paid for my prescriptions with my HSA I can't turn around and claim that as a tax-deductible medical expense," said Rhinehart.
Sometimes deducting medical expenses can be complicated, especially for things like prescriptions for off-label use: If you're taking Ozempic for weight loss and not for diabetes, for example, you may need additional records or letters from your doctor to claim the deduction.
Keep records and receipts of all relevant medical expenses throughout the year, including prescriptions, correspondence from your doctor and insurance company and even mileage for medical-related travel.
While this requires some effort, the tax savings can be substantial — especially if you have chronic conditions or a major medical event in the last year.
If you're itemizing your deductions, use IRS Form 1040 and attach Schedule A.
Some of CNBC Select's top picks for tax software can guide you through the process, including TurboTax Live Full Service. You may also decide to work with an account with knowledge of what is allowed according to the IRS's rules.
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Yes
You can deduct qualified medical expenses that exceed 7.5% of your adjusted gross income. You must itemize your deductions on Schedule A, however, so the total of your deductions needs to exceed that 7.5% threshold for it to be worthwhile.
Whether you can deduct your premiums depends on how you pay them. If your health insurance costs are deducted from your paycheck before taxes are taken out, you can't deduct your premiums. If you obtained health care on your own (such as through the marketplace) you may be able to deduct premiums. You'll need to itemize your deductions.
Both traditional braces and Invisalign can be tax deductible if they are prescribed by a qualified dental professional to treat a legitimate dental condition. if they are purely for cosmetic reasons, however, they are generally not deductible.
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At CNBC Select, we work with experts with specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Charlene Rhinehart, editor-in-chief of The Wealthy Women Daily and personal finance editor at GoodRX.
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurancereview is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insuranceproductsWhile CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
