Medical Expense Tax Deduction Calculator
About the Medical Expense Tax Deduction Calculator
The IRS allows taxpayers who itemize deductions to deduct qualifying medical expenses that exceed 7.5% of their Adjusted Gross Income (AGI). Qualifying expenses include premiums for insurance not paid through an employer, out-of-pocket medical costs, prescription medications, dental and vision care, and many other healthcare-related costs. For example, if your AGI is $75,000, only medical expenses above $5,625 (7.5%) can be deducted. This deduction can be significant for taxpayers with high medical costs relative to income. Keep in mind that you must itemize deductions rather than take the standard deduction to claim this benefit. A tax professional can help determine whether itemizing makes sense for your overall tax situation.
Frequently Asked Questions
What medical expenses qualify for the tax deduction?
Qualifying expenses include doctor and hospital fees, prescription drugs, dental and vision care, health insurance premiums (if not employer-paid or pre-tax), long-term care insurance, and medical equipment. Cosmetic procedures generally do not qualify.
Can I deduct health insurance premiums?
Yes, if you paid premiums with after-tax dollars (not through a pre-tax payroll deduction or HSA). Self-employed individuals may deduct 100% of premiums as an above-the-line deduction regardless of the 7.5% threshold.
Is the 7.5% threshold the same for everyone?
Yes. As of 2026, the threshold is 7.5% of AGI for all taxpayers regardless of age. In prior years, older taxpayers had a different threshold, but the Tax Cuts and Jobs Act standardized it at 7.5%.
Can I deduct medical expenses for dependents?
Yes. You can deduct qualifying medical expenses you paid for yourself, your spouse, and your dependents, even if the dependent was not claimed on your return in that tax year.
Should I itemize or take the standard deduction?
Compare your total itemized deductions (medical + mortgage interest + charitable + state taxes up to $10,000) against the standard deduction ($15,000 single / $30,000 married in 2026). Only itemize if your total exceeds the standard deduction.
Disclaimer: Results are estimates only. Consult a tax professional for personalized advice.