Medical Expense Deduction
The medical expense deduction lets taxpayers who itemize on Schedule A deduct qualifying out-of-pocket medical and dental costs that exceed 7.5 percent of their adjusted gross income (AGI) for the 2025 tax year. Eligible expenses include premiums not paid pre-tax, prescription medications, surgery, hospital stays, vision and dental care, and certain long-term care costs.
This deduction is most impactful for taxpayers with significant unreimbursed medical costs relative to their income, such as those managing chronic conditions, undergoing major procedures, or supporting dependents with high medical needs. Expenses reimbursed by insurance or paid from an HSA or FSA cannot be included.
Thorough documentation is critical. Taxpayers should retain explanation-of-benefits statements, receipts, and provider invoices for every claimed expense. Mileage driven to and from medical appointments is also deductible at the IRS medical mileage rate, so keeping a mileage log throughout the year adds up meaningfully.