What is the medical expense deduction and who qualifies?

The medical expense deduction allows taxpayers who itemize to deduct qualifying medical and dental expenses that exceed 7.5% of their adjusted gross income (AGI). For example, if your AGI is $100,000, you can deduct medical expenses above $7,500. This deduction is most valuable for taxpayers with significant medical costs or lower incomes. Book a Free Call →

What medical expenses are deductible?

Deductible medical expenses include: doctor and hospital fees, prescription medications, dental and vision care, mental health treatment, medical equipment (wheelchairs, hearing aids), long-term care expenses, health insurance premiums (if not pre-tax), and transportation to medical appointments. Over-the-counter medications are generally NOT deductible unless prescribed. Book a Free Call →

What is the 7.5% AGI threshold for medical deductions?

You can only deduct medical expenses that exceed 7.5% of your adjusted gross income. If your AGI is $80,000, the threshold is $6,000 — only expenses above $6,000 are deductible. If you have $10,000 in medical expenses, you can deduct $4,000. The threshold makes this deduction most valuable for those with high medical costs relative to their income. Book a Free Call →

Can I deduct health insurance premiums as a medical expense?

Self-employed individuals can deduct 100% of health insurance premiums as an above-the-line deduction (not subject to the 7.5% floor). Employees who pay premiums with after-tax dollars can include them in medical expenses on Schedule A. Premiums paid pre-tax through an employer's cafeteria plan are NOT deductible (you already received the tax benefit). Book a Free Call →

Are cosmetic procedures tax deductible?

Generally no — cosmetic procedures that are not medically necessary (facelifts, liposuction, teeth whitening, hair transplants) are not deductible. However, procedures to correct a deformity from a congenital abnormality, personal injury, or disfiguring disease ARE deductible. The key test is whether the procedure is primarily for appearance or for medical necessity. Book a Free Call →

Can I deduct medical expenses for my dependents?

Yes — you can deduct medical expenses you paid for yourself, your spouse, and your dependents. You can also deduct expenses for a person who would have been your dependent except that they had gross income above the threshold, filed a joint return, or could be claimed as a dependent by another taxpayer. Book a Free Call →

Are long-term care expenses deductible as medical expenses?

Yes — qualified long-term care services and a portion of long-term care insurance premiums are deductible as medical expenses. The deductible premium amount depends on your age: up to $480 (age 40 or under) to $6,000 (age 71+) in 2026. Long-term care costs for a chronically ill individual in a nursing home or assisted living facility also qualify. Book a Free Call →

Can I deduct the cost of a gym membership or weight loss program?

Generally no — gym memberships and general fitness programs are not deductible even if recommended by a doctor for general health. However, a weight loss program specifically prescribed by a doctor to treat a diagnosed condition (obesity, hypertension, heart disease) may qualify. The program must treat a specific disease, not just improve general health. Book a Free Call →

Are fertility treatments and IVF deductible as medical expenses?

Yes — fertility treatments including IVF, egg freezing, sperm banking, and related procedures are deductible as medical expenses to the extent they exceed the 7.5% AGI floor. These costs can be substantial ($15,000–$30,000+ per cycle) and may push you over the threshold. Keep all receipts and documentation from your fertility clinic. Book a Free Call →

Can I deduct medical marijuana or cannabis costs?

No — even in states where medical marijuana is legal, it remains a Schedule I controlled substance under federal law and is not deductible as a medical expense on your federal tax return. Some states may allow the deduction on state returns. Uncle Kam advises on state-specific deduction opportunities. Book a Free Call →

Is travel to medical appointments deductible?

Yes — transportation costs to and from medical appointments are deductible. You can use the standard medical mileage rate (21 cents per mile in 2026) or actual costs for gas and oil. Parking fees and tolls are also deductible. Lodging (up to $50/night per person) for out-of-town medical treatment is deductible, but meals are not. Book a Free Call →

Can I use an HSA to pay medical expenses and still claim the deduction?

No — you cannot deduct medical expenses paid with HSA funds. The HSA contribution was already tax-deductible (or pre-tax), so deducting the expenses again would be double-dipping. Only out-of-pocket medical expenses NOT reimbursed by insurance, HSA, FSA, or any other source are eligible for the Schedule A deduction. Book a Free Call →

What records do I need to claim the medical expense deduction?

Keep receipts, invoices, and explanation of benefits (EOB) statements for all medical expenses. Document the medical necessity of any unusual expenses. Keep a mileage log for medical travel. Your records should show the date, provider, amount paid, and the medical condition being treated. Uncle Kam recommends maintaining a dedicated folder for medical expense documentation throughout the year. Book a Free Call →

Are dental and vision expenses deductible?

Yes — dental expenses (cleanings, fillings, crowns, braces, dentures, oral surgery) and vision expenses (eye exams, glasses, contact lenses, LASIK surgery) are fully deductible as medical expenses, subject to the 7.5% AGI floor. Cosmetic dental procedures (teeth whitening) are not deductible. Book a Free Call →

Can I deduct mental health treatment costs?

Yes — mental health treatment including therapy, psychiatric care, prescription medications for mental health conditions, and inpatient mental health treatment are all deductible as medical expenses. This includes costs for treating depression, anxiety, PTSD, addiction, and other mental health conditions. The 7.5% AGI floor applies. Book a Free Call →

How does the medical expense deduction interact with the standard deduction?

The medical expense deduction is only available if you itemize on Schedule A. If your total itemized deductions (medical expenses above 7.5% AGI + SALT + mortgage interest + charitable contributions) don't exceed the standard deduction ($15,000 single / $30,000 MFJ in 2026), you should take the standard deduction. Uncle Kam compares both options to maximize your deduction. Book a Free Call →

Can I deduct home modifications for medical purposes?

Yes — home modifications made for medical reasons (wheelchair ramps, grab bars, widened doorways, stair lifts, accessible bathrooms) are deductible as medical expenses. The deductible amount is the cost of the modification minus any increase in the home's fair market value. Modifications that don't increase home value (like grab bars) are fully deductible. Book a Free Call →

Are prescription drugs deductible as medical expenses?

Yes — prescription medications are fully deductible as medical expenses. Over-the-counter medications are generally NOT deductible unless prescribed by a doctor. Insulin is an exception — it is deductible without a prescription. Keep all pharmacy receipts and prescription records to document your medication expenses. Book a Free Call →

Can I deduct medical expenses paid on a credit card?

Yes — medical expenses are deductible in the year you charge them to a credit card, even if you pay the credit card bill in a later year. The deduction is based on when the expense is incurred (charged), not when the credit card is paid. This means you can accelerate deductions by charging December medical expenses before year-end. Book a Free Call →

How do I report medical expenses on my tax return?

Medical expenses are reported on Schedule A (Itemized Deductions), Lines 1–4. Enter your total qualified medical expenses on Line 1, your AGI on Line 2, the 7.5% floor (Line 2 × 7.5%) on Line 3, and the deductible amount (Line 1 minus Line 3) on Line 4. Uncle Kam ensures all qualifying expenses are captured and properly documented. Book a Free Call →

Uncle Kam

What Is the Medical Expense Deduction?

The medical expense deduction allows taxpayers who itemize to deduct qualified medical and dental expenses that exceed 7.5% of their adjusted gross income (AGI). Only the amount above the 7.5% threshold is deductible. This deduction is reported on Schedule A and is available to taxpayers of all income levels, though the AGI floor means it primarily benefits those with high medical costs relative to their income.

Who Can Claim the Medical Expense Deduction?

Taxpayers who itemize deductions on Schedule A
Individuals with significant out-of-pocket medical costs exceeding 7.5% of AGI
Taxpayers who paid medical expenses for themselves, a spouse, or a dependent
Self-employed individuals (who may also deduct 100% of health insurance premiums above-the-line)

What Medical Expenses Qualify?

Health insurance premiums paid out-of-pocket (not pre-tax through an employer)
Doctor, dentist, and hospital fees
Prescription medications
Long-term care insurance premiums (subject to age-based limits)
Medical equipment — wheelchairs, hearing aids, glasses, contact lenses
Mental health treatment — therapy, psychiatric care
Fertility treatments and medically necessary procedures
Transportation costs to medical appointments (at the IRS medical mileage rate)
Nursing home care when primarily for medical reasons

What Does NOT Qualify?

Cosmetic surgery (unless medically necessary)
Over-the-counter medications (unless prescribed)
Health club memberships or gym fees
Teeth whitening or other purely cosmetic dental work
Expenses reimbursed by insurance or an HSA/FSA

How to Calculate the Medical Expense Deduction

Example: Your AGI is $80,000. The 7.5% floor is $6,000. If you paid $10,000 in qualifying medical expenses, you can deduct $4,000 ($10,000 − $6,000). The deduction only applies to amounts above the threshold.

Self-Employed Health Insurance Deduction

Self-employed individuals can deduct 100% of health insurance premiums as an above-the-line deduction on Schedule 1 — not subject to the 7.5% AGI floor. This is generally more valuable than the itemized medical expense deduction. Uncle Kam ensures self-employed clients claim both deductions where applicable.

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Medical Expense Deduction

What Is the Medical Expense Deduction?

Who Can Claim the Medical Expense Deduction?

What Medical Expenses Qualify?

What Does NOT Qualify?

How to Calculate the Medical Expense Deduction

Self-Employed Health Insurance Deduction

Medical Expense Deduction FAQs

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