Medical Expense Deduction In Texas
The federal medical expense deduction allows itemizing taxpayers to deduct unreimbursed medical and dental expenses that exceed 7.5 percent of adjusted gross income. Qualifying costs include doctor visits, hospital stays, prescription medications, medical equipment, and health insurance premiums paid out of pocket.
Texas has no state income tax, so the medical expense deduction only applies at the federal level for Texas residents. There is no state return on which to claim or lose the deduction, simplifying the filing process for Texans who have significant medical costs.
Texas residents who itemize on their federal return should collect all medical receipts, insurance statements, and premium payment records throughout the year. Costs reimbursed by insurance or paid through a flexible spending account do not qualify, so tracking net out-of-pocket spending is key to accurately calculating the deductible amount.