What Medical Expenses Are Tax Deductible in 2026

Medical expenses can reduce your federal tax liability if you itemize deductions, but only the amount exceeding 7.5 percent of your adjusted gross income qualifies. For most taxpayers, this threshold is high enough that the deduction only applies in years with significant medical expenses.

The 7.5 percent threshold

If your AGI is $80,000 and you had $10,000 in qualifying medical expenses, only $4,000 is potentially deductible ($10,000 minus 7.5 percent of $80,000, which is $6,000). This amount is added to your other itemized deductions and compared to the standard deduction.

For the deduction to benefit you, your total itemized deductions must exceed the standard deduction. In 2026, the standard deduction is $15,000 for single filers and $30,000 for married filing jointly. Medical deductions only help if your total itemized deductions exceed these amounts.

What qualifies

Payments to physicians, surgeons, dentists, and other medical practitioners for diagnosis, treatment, or prevention of disease. Hospital and nursing home costs. Prescription drugs and insulin. Medical equipment including hearing aids, wheelchairs, and crutches. Long-term care services if medically necessary. Health insurance premiums if you are self-employed (these are deductible above the line on Schedule 1 without the 7.5 percent limitation). Medicare premiums. Transportation to and from medical care.

What does not qualify

Non-prescription vitamins and supplements unless prescribed. Cosmetic procedures that are not medically necessary. Gym memberships even if recommended for health. Funeral expenses. Insurance premiums paid with pre-tax dollars through an employer plan. Costs reimbursed by insurance or an HSA.

Special rules for HSA and FSA reimbursed expenses

You cannot deduct medical expenses that were paid with or reimbursed by HSA or FSA funds. The tax benefit was already received when contributions were made or reimbursements were taken. Deducting these expenses again would constitute double-counting the tax benefit.

Tracking throughout the year

Keep receipts for all medical expenses throughout the year. At year end, tally the total and compare it against 7.5 percent of your projected AGI. If you are close to the threshold, consider accelerating or deferring expenses across tax years to maximize the deduction.

Medical expense tracking is also valuable even if you do not itemize. HSA reimbursements require documentation of qualifying expenses. Insurance disputes sometimes require proof of what you paid. Keep records regardless of whether they affect your taxes.

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Bill Advantage is a document literacy tool. Nothing in this article constitutes legal or medical advice.