At Vrakas CPAs + Advisors, we know that understanding different deductions can make a big difference when filing your taxes. Understanding what medical and dental expenses you can deduct can make a real impact on your return if appropriately claimed. In general, you can deduct qualifying medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI). If your total itemized deductions—including property taxes, state income taxes, mortgage interest, charitable contributions, and medical expenses—exceed the standard deduction, you could see a larger tax refund.
The qualifying medical and dental expenses list is broader than many people realize. Below are several categories to consider.
Capital Expenses
Specific home improvements or special equipment installed for medical reasons may qualify as deductible expenses. Examples include stair lifts, ramps, or bathroom railings installed primarily for your medical care, your spouse’s medical care, or your dependent’s medical care.
If the improvement permanently increases your home’s value, only the portion of the expense that exceeds the increase in value may be deductible. If the improvement does not increase the property’s value, the full cost may qualify. Because determining this amount can be complex, it’s wise to consult with a tax professional or CPA to calculate the appropriate deduction.
Dental Expenses
Qualified dental expenses include payments for teeth cleaning, X-rays, fillings, braces, extractions, dentures, and other dental treatments.
Expert Tip from Vrakas: “Specific dental procedures, such as teeth whitening or dental veneers, are considered cosmetic and therefore not eligible for deduction.” – Brian Kaker, CPA
Health Insurance Premiums
Premiums paid for health insurance qualify as medical expenses. This includes premiums for Medicare Parts B and D, and may also include Medicare Part A premiums if you voluntarily enrolled.
Long-Term Care Services and Insurance
Payments for qualified long-term care services may also qualify as medical expenses. Additionally, premiums for long-term care insurance are deductible up to specific limits based on your age.
If you are self-employed, you may also include eligible long-term care premiums when calculating the self-employed health insurance deduction on IRS Form 7206.
At Vrakas, our professionals can help you evaluate your long-term care planning options to ensure your healthcare needs and financial goals remain aligned.
Prescription Medicines
You can deduct the cost of prescription medications and insulin. However, over-the-counter drugs that are not prescribed are not deductible (except for insulin).
Nursing Home and Nursing Services
The cost of medical care in a nursing home or similar facility qualifies as a medical expense if the primary reason for being there is to receive medical care. You can also deduct the cost of nursing services—even if the provider is not a licensed nurse—when the services involve medical or personal care, such as administering medication, changing dressings, or assisting with daily activities like bathing and grooming.
Related employment taxes for nursing services are also deductible as medical expenses.
Medical Operations
You may deduct costs related to necessary medical procedures, excluding elective cosmetic surgeries. However, cosmetic surgeries are deductible when they correct deformities caused by congenital abnormalities, injuries, or diseases.
Example: If a patient undergoes reconstructive surgery after a mastectomy due to cancer, those costs are deductible because they address a medical condition.
Physical Exams and Diagnostic Tests
Annual physical exams and diagnostic tests prescribed by a physician are also eligible medical expenses.
Transportation Expenses
For medical care, transportation is essential, and it’s deductible. This can include out-of-pocket costs for gas, or you can use the IRS standard medical mileage rate for the applicable tax year. Expenses such as insurance, maintenance, or depreciation related to transportation are not deductible.
Weight-Loss Programs
Weight-loss programs prescribed by a physician to treat specific medical conditions—such as obesity, hypertension, or heart disease—are deductible medical expenses.
Wheelchairs and Accessibility Equipment
The cost of a wheelchair or other medical equipment needed to manage an illness or disability can count as a deductible medical expense. You can also include the cost of keeping that equipment in good working condition.
Maximizing Your Medical Deductions
Understanding which medical expenses you qualify for can make a significant impact when filing your taxes. It’s essential to know what counts as deductible to make informed decisions and take full advantage of all deductions available. Deciding whether to itemize or stick with the standard deduction comes down to what makes the most sense for your personal situation.
Sources:
IRS Publication 502, Medical and Dental Expenses (Including the Health Coverage Tax Credit), U.S. Department of the Treasury, 2024.