The IRS lets you deduct medical and dental expenses that amount to more than 7.5% of your adjusted gross income (a fancy term that basically boils down to how much money you brought in during the year).
Some qualified medical expenses include:
- therapy/mental health;
- a portion of your long-term care insurance premiums;
- inpatient treatment for alcoholism or drug addiction;
- ambulance charges; breast pumps and supplies;
- transportation to and from hospitals, clinics, and treatment facilities;
- fertility treatments;
- special equipment installed in your home when it's principally used to care for you, your spouse or your dependents;
- nursing services;
- and many more, which you can find here on the IRS's website.
Let's say you have $100,000 in adjusted gross income, and $10,000 in qualified medical expenses. You can then deduct $2,500 of your medical expenses on your taxes (the amount over 7.5% of your income). But you can only deduct that $2,500 if you end up itemizing your deductions. Most people don't itemize because it requires enough personal expenses to exceed the standard deduction the IRS gives to taxpayers (in 2022: $12,950 for singles, and $25,900 for married filing jointly couples).
Unless you live in a high-tax area and own your home, or you need to itemize for other reasons (for example, you file separately from your spouse and they itemize), you'll likely take the standard deduction on your taxes. That said, serious illnesses or prolonged hospital stays, or fertility treatments, can easily cost taxpayers five figures or more, in which case, we might be able to deduct some of your expenses.
Note that medical expenses paid by insurance companies or other sources are not deductible. And if you have marketplace insurance, you can't deduct any medical insurance premiums that your premium tax credit paid for.
The IRS developed a helpful interactive tool to figure out if a particular medical expense is deductible.
Still have questions about which of your medical expenses qualify? You can contact us at firstname.lastname@example.org.