What medical expenses qualify?

Most out-of-pocket medical costs: insurance premiums (not paid pre-tax), copays, deductibles, prescriptions, dental work, vision care, hearing aids, therapy, medical travel, home modifications for medical needs, and even some long-term care costs.

How does the 7.5% floor work?

You can only deduct medical expenses exceeding 7.5% of your AGI. With $100K AGI, the first $7,500 is not deductible. If you have $20,000 in medical expenses, you deduct $12,500 ($20,000 - $7,500). This is why bunching medical procedures in one year can help.

Can I deduct health insurance premiums?

Only if you pay them with after-tax dollars. Premiums paid through employer payroll deductions (pre-tax) are already tax-advantaged and can't be deducted again. Self-employed individuals may be able to use the self-employed health insurance deduction instead, which is often more favorable.

Do I need to itemize?

Yes - the medical expense deduction is only available if you itemize deductions. With the high standard deduction ($16,100 single / $32,200 married in 2026), you need significant medical expenses plus other deductions to make itemizing worthwhile.

Can I deduct medical expenses for family members?

Yes - you can include medical expenses for yourself, your spouse, and your dependents. In some cases, you can also deduct expenses for a non-dependent who would qualify as your dependent except for their income.

Tax Optimization

Medical Expense Deduction

FREE to View

intermediate · $50K - $100K

Medical expenses exceeding 7.5% of AGI are deductible if you itemize.

With $100K AGI, first $7,500 isn't deductible.

If you have $20K in expenses, deduct $12,500.

Bundle procedures in high-expense years.

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Tax Benefit

Deduct unreimbursed medical expenses above 7.5% of AGI

Requirements

Expenses exceed 7.5% of AGI
Must itemize deductions
Expenses not reimbursed by insurance

How to Implement

1Track all medical expenses throughout year
2Include premiums, procedures, prescriptions, travel
3Calculate 7.5% AGI threshold
4Bundle elective procedures if close to threshold

Frequently Asked Questions

Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.

Last reviewed: April 2026

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Sources

Internal Revenue Service, Rev. Proc. 2025-32
2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)
Internal Revenue Service, Notice 2025-67
2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)
Internal Revenue Service, Rev. Proc. 2025-19
2026 HSA and HDHP inflation-adjusted limits

Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.