Deducting Medical Expenses: How to Make the Most of Healthcare Costs

7 January 2026

Let’s face it—medical bills can feel like a never-ending avalanche of costs. One trip to the doctor, a few prescriptions, and suddenly your bank account is on life support. The good news? The IRS actually gives you a bit of relief (for once) with medical expense deductions. But before you start dreaming of a tax refund big enough to cover a spa day, let’s break down exactly how this works.

Can You Deduct Your Medical Expenses?

Before you get too excited, not all medical expenses are deductible. The IRS has some strict rules, but if you play your cards right, you could reduce your taxable income and keep more cash in your pocket.

The 7.5% Rule

This is the big one. You can only deduct medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI). So if your AGI is $50,000, only the medical expenses over $3,750 are deductible.

Not exactly a free-for-all, huh? But don’t give up just yet.

What Medical Expenses Qualify?

Before you start throwing every cough drop and vitamin bottle into your "deductible" pile, let’s clarify what counts:

✅ Doctor visits
✅ Hospital stays
✅ Prescription medication
✅ Dental and vision care
✅ Mental health counseling
✅ Surgeries and medical procedures
✅ Medical equipment (wheelchairs, crutches, etc.)
✅ Transportation costs for medical care

Here’s what doesn’t qualify:

❌ Over-the-counter meds (sorry, that emergency ibuprofen stash doesn’t count)
❌ Cosmetic procedures (Botox for wrinkles? Nope. Botox for migraines? That’s a maybe!)
❌ Gym memberships (unless prescribed for a specific medical condition)
❌ Supplements and vitamins (unless prescribed by a doctor)

How to Actually Claim These Deductions

Alright, so you’ve got a stack of medical bills. Now what?

1. You Must Itemize Your Deductions

If you usually just take the standard deduction, this might be a dealbreaker. Medical expenses are part of itemized deductions, so unless your total deductions are higher than the standard deduction, it won’t be worth the trouble.

For 2024, the standard deduction is:
- $13,850 for single filers
- $27,700 for married couples filing jointly
- $20,800 for heads of households

If your total itemized deductions (including mortgage interest, charitable donations, and medical expenses) don’t exceed these amounts, stick with the standard deduction.

2. Keep Your Receipts (And Other Proof!)

The IRS isn’t going to take your word for it. Keep detailed records of:
- Medical bills
- Insurance statements
- Pharmacy receipts
- Mileage logs for medical-related travel

If you ever get audited (yikes!), you’ll need these to prove your deductions were legitimate.

3. Use Tax-Advantaged Accounts

If you’re proactive, you can save on medical expenses before tax season even begins:

- HSA (Health Savings Account) – If you have a high-deductible health plan (HDHP), you can contribute pre-tax money to an HSA and use it for medical expenses.
- FSA (Flexible Spending Account) – Similar to an HSA, but usually offered through an employer. The downside? FSAs have a “use it or lose it” policy, so plan wisely.

These accounts let you pay for medical expenses tax-free, so you’re saving money without worrying about the 7.5% rule.

Sneaky Ways to Maximize Your Deduction

Want to get the most out of your healthcare costs? Here are a few tricks:

1. Bunch Your Medical Expenses Into One Year

If you’re close to the 7.5% threshold, consider scheduling elective medical procedures in the same year. Getting new glasses, dental work, and that knee surgery all in 2024 could push you over the limit and make more expenses deductible.

2. Deduct Medical Travel Costs

Did you know that trips to the doctor’s office count, too? You can deduct mileage (at $0.22 per mile in 2024), parking fees, and even tolls. Taking a taxi, Uber, or public transportation to a medical appointment? Those costs are deductible as well.

3. Include Long-Term Care Costs

If you or a family member require long-term care, some of these expenses might be deductible. Assisted living and nursing home fees may qualify if the primary reason for admission is medical care.

4. Deduct Medical Expenses for Dependents

Caring for a child, spouse, or even an elderly parent? Their medical expenses can be added to yours—as long as you pay more than half their support.

Should You Hire a Tax Professional?

If your medical expenses are complicated, it might be worth bringing in a pro. CPAs and tax advisors can help:
✔ Identify missed deductions
✔ Maximize tax-saving strategies
✔ Ensure you’re following IRS rules

Considering the money you could save, their fee might just pay for itself!

The Bottom Line

While deducting medical expenses can be a great way to lower your tax bill, it requires careful planning and record-keeping. If your expenses exceed 7.5% of your AGI, and you’re willing to itemize, you might find some relief come tax season.

If not? Well, at least you tried—now go take that spa day. (Just don’t try to write it off as “mental health therapy.