If you had substantial medical costs last year, you may be asking whether they can reduce your tax bill on your 2025 income tax return. While the medical expense tax deduction can be valuable, income thresholds and other requirements often make it challenging to claim. On the upside, many taxpayers are surprised by how many types of medical expenses may qualify.
Limits on the Medical Expense Deduction
Medical expenses are deductible only if they weren’t reimbursed by insurance and weren’t paid through tax-advantaged accounts, such as a Health Savings Account (HSA) or Flexible Spending Account (FSA).
In addition, you can deduct medical expenses only to the extent that they exceed 7.5% of your adjusted gross income (AGI).
Example:
If your 2025 AGI is $100,000, your medical expenses must exceed $7,500 before any deduction is allowed. If you incurred $10,000 in eligible expenses, only $2,500 would be deductible.
Another key limitation is that medical expenses are deductible only if you itemize deductions. To make itemizing worthwhile, your total itemized deductions must exceed your standard deduction. Because of changes under the Tax Cuts and Jobs Act — made permanent by the One Big Beautiful Bill Act (OBBBA) — many taxpayers no longer itemize.
That said, some taxpayers may benefit from itemizing again for 2025 due to the OBBBA’s significant increase in the state and local tax (SALT) deduction limit. If that applies to you, it’s worth revisiting whether medical expenses can also provide a tax benefit.
What Medical Expenses Are Eligible?
If you expect to itemize deductions on your 2025 return, review your medical spending carefully to see whether it exceeds the 7.5% AGI threshold. Eligible expenses go well beyond hospital and physician bills.
Transportation for Medical Care
The cost of traveling to and from medical treatment is deductible. This includes public transportation, taxi fares, and the use of your personal vehicle.
For 2025, medical mileage can be deducted at 21 cents per mile, plus parking fees and tolls. Alternatively, you may deduct certain actual vehicle expenses, such as gas and oil, though costs like insurance, depreciation, and routine maintenance aren’t allowed.
Insurance Premiums
Health insurance premiums you pay out of pocket may be deductible, even if you receive coverage through your employer — as long as those premiums weren’t paid with pretax dollars.
Premiums for long-term care insurance also qualify, subject to age-based limits. The 2025 limits are:
- 40 and under: $480
- 41 to 50: $900
- 51 to 60: $1,800
- 61 to 70: $4,810
- Over 70: $6,020
Therapists, Nurses, and Specialized Care
Payments for medical services provided by professionals other than physicians may qualify if they’re related to a diagnosed medical condition and not for general wellness.
For example, physical therapy following surgery is deductible, but hiring a personal trainer for general fitness isn’t. Eligible expenses can include acupuncture, psychological services for medical care, and certain long-term care services required by chronically ill individuals.
Eyeglasses, Hearing Aids, Dental Work, and Prescriptions
You can deduct the cost of eyeglasses, contact lenses, hearing aids, dentures, and most dental treatments. Cosmetic procedures, such as teeth whitening, don’t qualify unless they’re medically necessary.
Prescription medications are deductible, but nonprescription drugs, including aspirin, generally aren’t — even if recommended by a doctor.
Smoking-Cessation Programs
Amounts paid for smoking-cessation programs and prescription medications designed to ease nicotine withdrawal are deductible. However, over-the-counter products like nicotine gum and certain patches don’t qualify.
Weight-Loss Programs
A weight-loss program may be deductible if it’s undertaken to treat a disease diagnosed by a physician, such as obesity or hypertension. Obtaining a written medical diagnosis is strongly recommended.
In these cases, deductible costs may include program fees and meeting attendance, though the cost of special foods generally isn’t deductible.
Dependents and Other Qualifying Individuals
You may deduct medical expenses you pay for your dependents, including children. You may also be able to deduct expenses paid for a parent or grandparent who would qualify as a dependent except for income or filing status limitations.
In most cases involving divorced parents, medical expenses for a child can be claimed by the parent who actually pays them.
Determining Whether You Can Benefit
After reviewing eligible expenses, consider whether your total medical costs for 2025 exceed 7.5% of your AGI. If you’re unsure whether certain expenses qualify or whether itemizing makes sense for you, professional guidance can help.
We can review your situation to determine whether you can benefit from the medical expense tax deduction — along with other tax-saving opportunities — on your 2025 income tax return.
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