Can I Deduct Medical Copays on My Taxes?

You can deduct medical copayments on your taxes, but these payments are subject to qualifications. As part of the broader category of medical expenses, this deduction is governed by Internal Revenue Service (IRS) rules. Claiming this tax benefit depends on your financial situation and your ability to meet certain thresholds established in the tax code.

Understanding the Itemization Rule

The primary requirement for deducting any medical expense is the need to itemize deductions on your tax return. Each year, taxpayers choose between taking the standard deduction—a flat-dollar amount that reduces taxable income—or itemizing. Itemizing involves adding up all eligible expenses, such as certain state and local taxes, home mortgage interest, and charitable contributions, in addition to your medical costs.

You can only gain a tax benefit from your medical expenses if your total itemized deductions exceed the standard deduction for your filing status. For the 2025 tax year, the standard deduction for single filers is $15,000, for married couples filing jointly it is $30,000, and for heads of household, it is $22,500. If your total itemizable expenses do not surpass your standard deduction, you cannot deduct your medical copays.

For many taxpayers, the standard deduction provides a larger tax benefit than itemizing. You should first estimate if your total potential itemized deductions are likely to be greater than your standard deduction before proceeding.

Identifying Deductible Medical Expenses

Qualifying medical expenses are defined by the IRS as payments for the “diagnosis, cure, mitigation, treatment, or prevention of disease.” You should gather all eligible out-of-pocket costs you have incurred for yourself, your spouse, and your dependents.

Commonly deductible expenses include:

• Payments to doctors, dentists, surgeons, chiropractors, and psychologists
• The costs of prescription medications and insulin
• Amounts paid for medical equipment like glasses, contact lenses, false teeth, and hearing aids
• Travel costs for medical care, such as mileage on your car at a rate of 21 cents per mile for the 2025 tax year, or bus fare and parking fees

It is also important to understand what does not qualify. You cannot deduct expenses for items that are merely beneficial to general health, such as vitamins or a gym membership, and cosmetic surgery is generally not deductible. You also cannot deduct nonprescription medicines, toothpaste, or toiletries.

You cannot deduct any expense that was reimbursed by your insurance company. If you paid for an expense using funds from a tax-advantaged account like a Health Savings Account (HSA) or a Flexible Spending Account (FSA), that amount cannot be deducted again on your tax return.

Calculating the AGI Limitation

After totaling your qualifying medical expenses, you must apply the Adjusted Gross Income (AGI) limitation. Your AGI is your gross income minus certain “above-the-line” deductions and is a figure found on your Form 1040. The IRS rule states that you can only deduct the amount of medical expenses that is more than 7.5% of your AGI.

To calculate this, multiply your AGI by 7.5% (0.075) to find your threshold. Only the portion of your total medical expenses that exceeds this threshold is deductible. For instance, if your AGI is $60,000, your 7.5% threshold would be $4,500.

If your total unreimbursed medical expenses for the year were $6,000, you would subtract the $4,500 threshold from your total expenses, leaving $1,500. This is the amount you can include with your other itemized deductions. If your total medical expenses were $4,000, you would not be able to deduct any of them as they are below the $4,500 threshold.

Claiming the Deduction on Your Tax Return

The medical expense deduction is claimed on Schedule A (Form 1040), Itemized Deductions. This form is where you list all your itemized expenses, which are then totaled and transferred to your main Form 1040. On Schedule A, you will report your total medical expenses and perform the 7.5% AGI calculation to find your final deductible amount.

Record-keeping is necessary when claiming this deduction. You should retain all supporting documents, including receipts for copayments, pharmacy printouts, medical bills, and Explanation of Benefits (EOB) statements from your insurer. While you do not submit these records with your return, you must have them available as proof in the event the IRS has questions or initiates an audit.