Comprehensive Guide to Medical Deductions
Discover how to reduce your tax burden by tracking and deducting qualified medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI).
| Category | Description | Deductible Items | Additional Info |
|---|---|---|---|
| Transportation | Includes costs for traveling to and from medical appointments, such as mileage, parking fees, tolls, or public transportation. | Mileage (21ยข/mile for 2024), parking fees, tolls, taxis, trains, ambulances | Keep a log of dates, destinations, and miles driven. |
| Prescriptions | Out-of-pocket costs for prescription medications are deductible. | Costs not reimbursed by insurance | Retain receipts for all prescriptions. |
| Medical Procedures | Expenses for surgeries, doctor visits, and other medical treatments are deductible. | Doctor visits, surgeries, diagnostic tests, therapy | Ensure these costs exceed the 7.5% AGI threshold. |
| Medical Equipment | Costs for medical equipment or supplies, such as crutches, wheelchairs, or hearing aids, are deductible. | Crutches, wheelchairs, prosthetics, hearing aids | Keep invoices and prescriptions for equipment. |
| Insurance Premiums | Premiums for health insurance plans not reimbursed by an employer are deductible. | Health insurance, long-term care insurance | Excludes pre-tax payroll deductions. |
| Home Modifications | Modifications made to your home for medical purposes are deductible. | Ramps, widened doorways, accessible bathrooms | Deduction limited to costs exceeding property value increase. |
Maximizing Your Medical Deductions
- Keep detailed logs of medical trips, including mileage, tolls, and parking fees.
- Save all receipts for out-of-pocket medical expenses, even small ones.
- Consider using an app or tracker to categorize expenses and simplify tax filing.
- Consult a tax advisor for guidance on non-standard medical expenses.
Calculate Your Deduction Threshold
Understanding Medical Expense Deductions
Medical expenses that exceed 7.5% of your AGI can be deducted on your federal income tax return. Be sure to track all qualifying expenses throughout the year, including:
- Transportation costs for medical appointments
- Out-of-pocket prescription medication costs
- Surgeries and medical procedure fees
- Medical equipment such as wheelchairs or prosthetics
- Home modifications for medical needs
- Health insurance premiums not paid pre-tax