Medical & Dental Expenses Deduction

Should they surpass a particular level, the Medical and Dental Expenses Deduction lets taxpayers deduct some of their unreimbursed medical and dental costs. This deduction may lessen your total tax bill by helping to lower your taxable income. Still, you should know certain significant norms and restrictions.

What Counts as Dental and Medical Expenses?

Medical and dental expenses that qualify for the deduction cover a broad spectrum of health care-related charges, including:

• Medical services and doctor’s visits — e.g., consultations, procedures, physical therapy.
• Insulin and prescription drugs
• Services and treatments of hospitals
• Dental care, including regular check-ups, cleanings, fillings, and orthodontics
• Vision care, including eye exams, contact lenses, and glasses
• Medical devices, including wheelchairs, crutches, and hearing aids
• Mental health treatment, comprising counseling and therapy
• Services for long-term care in certain circumstances
• Health insurance premiums, including for policies covering your medical, dental, or vision care

What Doesn’t Fit?

Some costs are not deductible, including:

• Over-the-counter pharmaceuticals, non-prescription drugs
• Surgery for cosmetic reasons — unless it’s medically required
• Gym memberships or health club dues
• Most cosmetic dental treatments not medically required

Deduction Threshold

Your total payment must surpass a specified proportion of your Adjusted Gross Income (AGI) to deduct dental and medical costs. You may only deduct medical and dental costs for the 2024 tax year that surpass 7.5% of your AGI.

• For instance, 7.5% of your AGI of $50,000 is $3,750. Deductions would only apply to medical and dental costs over $3,750.
• Therefore, assuming you incurred qualifying expenses of $5,000, you would be able to deduct $1,250 ($5,000 – $3,750).

Deductions by Itemizing

• Medical and dental costs are classified as itemized deductions, hence you have to list your deductions on Schedule A of your Form 1040.
• This deduction is only available to you should your total itemized deductions—including items like mortgage interest, property taxes, and charitable contributions—exceed the standard deduction for your filing status.

The standard deduction for 2024 is:

• Single filers: $15,700
• Married couples filing jointly: $31,400
• Heads of household: $23,800

You might gain more by taking the standard deduction if your itemized deductions, including medical and dental costs, do not surpass the standard deduction.

When May You Take the Deduction?

• Regardless of when the services were rendered, you can only claim dental and medical expenditures in the year they were paid.
• For example, the charges are deducted in 2024 if you paid medical expenses in 2024 while the treatment took place in 2023.

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)

• Medical expenses paid with pre-tax money via an HSA or FSA cannot be counted for the medical deduction since they have already been paid.

Recap

If your medical expenses are substantial, the Medical and Dental Expenses Deduction can assist reduce your taxable income; however, only expenses over 7.5% of your AGI qualify for deduction. You have to itemize your deductions and make sure they surpass the standard deduction to qualify for this deduction. Tracking your qualifying expenses all year can help you save a lot of taxes if you have major medical or dental expenses.

This entry was posted on Thursday, April 3rd, 2025 at 10:31 pm and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.