So if you have $5,000 in medical bills, $1,250 of your bills could be tax-deductible. For example, if you have an AGI of $50,000, any health care expenses above $3,750 may be deductible. This deduction lowers your taxable income if you spend more than 7.5% of your adjusted gross income (AGI) on your medical costs throughout the tax year, including prescriptions, doctor’s fees and disease treatment. The medical expense deduction allows taxpayers to deduct unreimbursed, qualified medical expenses.

We cover what the medical expense deduction is, what the qualifying medical expenses are, what medical expenses are not tax-deductible and how you can claim medical expenses on your taxes.

If you are interested in claiming medical expenses on your taxes, this article is for you. Tax deductions can lower your total tax liability and reduce your taxable income. Keep your receipts if you or your dependents spend time in the hospital or face costly medical costs during the year. At the federal level, you may be able to deduct some of your qualifying medical expenses as long as you meet the requirements from the IRS. Fortunately, during tax season, you may be able to find some financial relief through the medical expense tax deduction. Unexpected medical expenses throughout the year can be an enormous burden on your finances. How and Why You Should Claim Medical Expenses on Your Taxes

Tax deductible expenses