2025 IRS Medical Deductions Guide – Claiming Medical Expenses on Your Taxes

 

Medical expenses can quickly add up, and many taxpayers aren’t aware that the IRS allows deductions for qualified medical expenses. Understanding which costs qualify, how much you can deduct, and how to claim them in 2025 can save you hundreds or even thousands of dollars on your tax return.

This guide explains the rules for medical expense deductions in 2025, including what counts as a deductible expense, filing requirements, and tips for maximizing your deduction.

What Are IRS Medical Deductions?

The IRS permits taxpayers to deduct unreimbursed medical and dental expenses that exceed 7.5% of their adjusted gross income (AGI).

Example:

·         AGI: $80,000

·         7.5% of AGI: $6,000

·         Qualified medical expenses: $9,000

·         Deductible amount: $3,000

Important: Only expenses paid during the tax year are deductible, and you must itemize deductions using Schedule A (Form 1040).

Who Can Claim Medical Expense Deductions

You can claim the deduction for medical expenses paid for:

·         Yourself

·         Your spouse

·         Dependents (children or qualifying relatives)

Even if a dependent isn’t claimed on your tax return, you may still deduct their qualifying medical expenses if you provide more than half of their support.

What Expenses Qualify in 2025

IRS rules define medical expenses as payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any body function.

✅ Common Deductible Medical Expenses

1.      Doctor and Hospital Fees

o    Payments to physicians, surgeons, dentists, chiropractors, and mental health professionals

o    Hospitalization, lab tests, surgeries, and nursing services

2.      Prescription Medications & Insulin

o    Prescription drugs and insulin are fully deductible

o    Over-the-counter medications are deductible only if prescribed by a doctor

3.      Health Insurance Premiums

o    Medical, dental, and long-term care premiums paid with after-tax income

o    Medicare Part B, Part D, and Medicare Advantage premiums qualify

4.      Medical Equipment & Supplies

o    Wheelchairs, crutches, prosthetics, hearing aids, eyeglasses, and contact lenses

5.      Travel & Lodging for Medical Care

o    Transportation to appointments (car mileage at 21¢ per mile in 2025)

o    Airfare, bus, or train tickets for medical care

o    Lodging up to $50 per night per person when traveling for medical treatment (excluding meals)

6.      Dental & Vision Care

o    Exams, cleanings, fillings, braces, dentures, and corrective surgeries like LASIK

7.      Preventive Care & Screenings

o    Vaccinations, blood tests, mammograms, and other preventive services

8.      Long-Term Care Services

o    Nursing home, assisted living, or in-home care if primarily for medical reasons

❌ Expenses That Are Not Deductible

·         Cosmetic procedures (unless medically necessary)

·         Health club memberships or gym fees

·         Vitamins or supplements (unless prescribed)

·         Funeral expenses

·         Nonprescription nicotine patches or gum (unless prescribed)

·         Childbirth classes or babysitting

How to Calculate Your Deduction

1.      Add up all qualified medical expenses for you, your spouse, and dependents.

2.      Subtract any reimbursements from insurance or employer programs (like HSA or FSA).

3.      Determine your AGI from your tax return.

4.      Multiply AGI by 7.5%.

5.      Subtract that amount from your total qualified expenses to find your deductible amount.

Example:

·         AGI: $70,000

·         Medical expenses: $9,000

·         7.5% threshold: $5,250

·         Deductible amount: $3,750

How to Claim Medical Expenses on Your Taxes

Step 1: Itemize Deductions

·         Use Schedule A (Form 1040)

·         You can only claim medical expenses if your itemized deductions exceed the standard deduction

Step 2: Gather Documentation

·         Receipts, invoices, insurance statements, and pharmacy records

·         Travel logs or mileage records for medical appointments

Step 3: Enter Expenses on Schedule A

·         Total unreimbursed medical expenses go on line 1 of Schedule A

Step 4: Apply the 7.5% AGI Rule

·         Subtract 7.5% of AGI from your total qualified medical expenses

Step 5: Attach Schedule A to Your Form 1040

·         Submit electronically or by mail

Special Considerations

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)

·         Expenses paid with pre-tax HSA or FSA funds cannot be deducted

·         HSAs are tax-deductible regardless of itemizing

·         2025 contribution limits:

o    HSA: $4,300 individual / $8,650 family

o    FSA: $3,150

Self-Employed Individuals

·         Can deduct 100% of health insurance premiums for themselves, spouses, and dependents above the line on Form 1040

·         Long-term care premiums are deductible up to IRS age-based limits

Recordkeeping Tips

Keep records for at least three years in case of an IRS audit:

·         Invoices, canceled checks, or credit card statements

·         Doctor and hospital statements

·         Insurance Explanation of Benefits (EOBs)

·         Mileage logs and travel receipts for medical trips

Should You Itemize or Take the Standard Deduction?

For 2025, the standard deduction is approximately:

·         $14,600 for single filers

·         $29,200 for married couples filing jointly

Itemize only if your total deductions (medical, mortgage interest, property taxes, charitable contributions, etc.) exceed the standard deduction.

Tips to Maximize Your Medical Deduction

1.      Pay medical bills strategically

o    Consider paying in the same year to maximize deductions for that tax year

2.      Combine expenses with dependents

o    Include costs for spouses, children, and qualifying relatives

3.      Keep detailed records

o    Organized documentation helps maximize deductions and reduces audit risk

4.      Consult a tax professional

o    Complex medical expenses or high-cost treatments may benefit from professional guidance

Final Thoughts

Medical expense deductions can significantly reduce your taxable income in 2025. By understanding which expenses qualify, tracking payments carefully, and using IRS rules strategically, you can save money while managing healthcare costs.

Even small deductions add up — particularly for taxpayers with high medical bills or chronic conditions. Early planning and accurate recordkeeping are key to maximizing your savings.