What Is the Medical Expense Deduction?

The medical expense deduction allows taxpayers who itemize to deduct qualifying out-of-pocket medical and dental expenses that exceed 7.5% of their adjusted gross income. So if your AGI is $80,000, only medical expenses above $6,000 are deductible — the first $6,000 provides no tax benefit. Qualifying expenses include doctor and hospital bills, prescription medications, health insurance premiums you paid out of pocket, dental care, vision care, long-term care insurance premiums, and medically necessary home modifications for disabled individuals. You cannot deduct expenses reimbursed by insurance or paid through a tax-advantaged account like an HSA or FSA. Because the 7.5% threshold is high and most people take the standard deduction, the medical expense deduction primarily benefits people with very large medical bills relative to their income, such as those facing major illness, surgery, or long-term care costs.