Xoa tax medical expense deduction

Is It Worth To Claim Medical Expenses On Taxes

Table of Contents


Table of Contents

Table of Contents

Table of Contents

Review by 
Hoang Tran

Full Bio

Ms. Frances Dang is a visionary CPA, Partner at XOATAX, and a Tax Expert for many high-net-worth clients and corporations. She specializes in both minimizing tax liabilities and driving sustainable growth. Over 7 years of dedicated service, Ms. Frances has provided personalized planning for high-net-worth clients including business owners, investors, and entrepreneurs spanning manufacturing, e-commerce, biotechnology, fintech, services, and non-profit sectors. 
Kevin Zhang renowned CPA and Tax Expert with over 15 years working in tax planning and financial optimization for individuals and large businesses. He excels in analytical abilities and innovative problem-solving, identifying tax minimization opportunities, and providing strategic recommendations to leadership teams.
Hoang Tran  is an accomplished CPA and financial advisor with over 8 years of experience. He specializes in providing tailored financial solutions, tax optimization, and strategic guidance to individuals and businesses. With a client-centric philosophy and a commitment to continuous learning, Hoang has earned a reputation as a trusted expert in personalized financial strategy. His expertise has helped businesses across diverse industries, including manufacturing, import & export, and wholesale & distribution, achieve their financial success.

When it comes to managing your finances, every opportunity to save counts. One avenue you might not be fully utilizing is claiming Medical Expenses On Taxes. In this guide, we’ll delve into the world of medical expense deductions, exploring the intricacies of how they work, what expenses qualify, and how to make the most of them to lower your tax bill. Let’s dive in.

Understanding Medical Expense Deductions

Medical expense deductions can provide significant tax benefits if you have substantial unreimbursed medical costs. These deductions are subject to certain rules and thresholds set by the tax authorities, so let’s break down the key details.

Thresholds and Eligibility

For tax returns filed in 2022, you might be able to deduct qualified out-of-pocket medical expenses that exceed 7.5% of your adjusted gross income (AGI) assuming that you choose to itemize your deductions and not taking the standard deduction when filing your tax return.. If your AGI is $40,000, for instance, medical bills beyond the first $3,000 (7.5% of $40,000) could potentially be deductible.

The threshold used to be 10%, but legislative changes in recent years (Tax Cuts and Jobs Act of 2017) lowered it to 7.5%.

Read more about: Standard Deduction 2023: Guide for Different Filing Status

Qualified Medical Expenses

The definition of qualified medical expenses on taxes. According to IRS Publication 502, eligible expenses include:

Medical-Expenses-On-Taxes-Maximizing Your Tax Savings

It’s important to note that expenses like over-the-counter medicines, cosmetic surgery for non-medical reasons, and most cosmetic products are generally not eligible for deduction.

For the full list of the eligible expenses, check out the Publication 502 on the IRS website:

Claiming the Deduction

To claim the medical expense deduction, you need to itemize your deductions on your tax return, specifically using Schedule A. This requires you to abandon standard deduction. If your total itemized deductions, including medical expenses on taxes, exceed your standard deduction, you’ll likely benefit along with other deductions on schedule A.

Considering Filing Status

Filing status can impact the potential benefit of claiming medical expenses on taxes. Married couples might find it advantageous to file separately if one spouse has significant medical expenses. This could result in a larger deduction. However, this approach might come with trade-offs, as it could affect other tax breaks.

Documenting Expenses

Solid documentation is crucial for claiming medical expense deductions. Keep receipts, bills, and records of all your medical expenses throughout the year. This meticulous record-keeping will come in handy if you’re audited by tax authorities.

State-Specific Rules

Your state’s rules might have an impact on your medical expense deduction. Some states have lower AGI thresholds, potentially allowing you to claim deductions even if you can’t on your federal return. It’s essential to research your state’s regulations to maximize your potential savings.

>>You may find interesting:

Lesser-Known Deductible Medical Expenses On Taxes

While many common medical expenses qualify for deductions, there are some lesser-known items that you might not be aware of. These include:

  1. Alternative treatments like acupuncture and nontraditional medical practitioners.
  2. Adaptive equipment for disabilities.
  3. Breast pumps and nursing supplies.
  4. Expenses related to diabetes management.
  5. Eye and ear-related costs such as eyeglasses, contact lenses, and hearing aids.
  6. Home improvements for medical care.
  7. Lodging expenses during medical treatment.
  8. Attending medical conferences related to chronic illnesses.
  9. Organ transplant-related expenses.
  10. Service animal costs.
  11. Dental treatment for prevention and alleviation of dental disease.
  12. Smoking cessation programs.
  13. Costs related to specific medical conditions like celiac disease or obesity.
  14. Specialized education for children with learning disabilities.
  15. Weight loss programs for medical reasons.
  16. Wigs for cancer patients.


Claims medical expenses on taxes can be a valuable strategy to lower your tax liability, especially if you have significant unreimbursed medical costs. By understanding the thresholds, eligible expenses, and rules associated with these deductions, you can make informed decisions about itemizing your deductions and potentially maximizing your tax savings. Remember that tax laws are subject to change, so staying updated and consulting a tax professional is always advisable to ensure you’re making the most of your financial opportunities.


Subscribe to Our Blog.

Stay up-to-date with the latest accounting tips and industrial news


Subscribe to Our Blog.

Stay up-to-date with the latest accounting tips and industrial news


Call Now

Do you wish to continue with the call?

Please provide your phone number and we will contact you within 2 hours

You have successfully submitted your phone number

.printfriendly { text-align: right; margin-bottom: 20px; } #printfriendly-text2{ background: transparent; border: 1px solid #2abc63; padding: 12px 20px; } .printfriendly a{ background: transparent; border: 1px solid #2abc63; padding: 12px 20px; }
Table of Contents