Can Seniors Deduct Medical Expenses on Taxes?

Many seniors face increasing healthcare costs as they age, making medical expenses a significant financial consideration. Fortunately, the tax code offers a potential avenue for relief through the medical expense deduction. This deduction allows eligible taxpayers to reduce their taxable income by a portion of their unreimbursed medical and dental expenses. Understanding the rules and requirements for this deduction can provide meaningful tax savings for older individuals.

General Eligibility and Thresholds

Medical expenses are generally deductible as an itemized deduction on Schedule A (Form 1040). To claim this deduction, your total itemized deductions must exceed the standard deduction amount for your filing status. The decision to itemize or take the standard deduction is important.

Only the amount of medical and dental expenses exceeding 7.5% of your Adjusted Gross Income (AGI) can be deducted. AGI represents your total gross income minus certain adjustments. For example, if your AGI is $50,000, only medical expenses over $3,750 (7.5% of $50,000) would be potentially deductible.

The deduction can be claimed for medical expenses paid for yourself, your spouse, and your dependents. For a person to be considered your dependent, they generally must be a qualifying child or a qualifying relative.

What Qualifies as a Medical Expense

The Internal Revenue Service (IRS) broadly defines medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any structure or function of the body. These expenses must be primarily for alleviating or preventing a physical or mental disability or illness and cannot be merely beneficial to general health. Only unreimbursed expenses are deductible, meaning any costs covered by insurance or other sources cannot be included.

Common deductible medical expenses particularly relevant to seniors include payments for medical services provided by doctors, dentists, surgeons, chiropractors, psychiatrists, and other medical practitioners. Hospital care, nursing services, and nursing home care are also deductible if the primary reason for the stay is medical care. Prescription medicines and insulin are included, but generally, nonprescription medicines or general health items like vitamins are not, unless prescribed.

Premiums paid for qualified health insurance, including Medicare Part B, Part D, and Medigap policies, can be deducted. Qualified long-term care services and long-term care insurance premiums are also deductible. These are subject to age-based limits.

Medical aids like eyeglasses, contact lenses, hearing aids, crutches, and wheelchairs are also considered deductible expenses. Transportation costs incurred primarily for and essential to medical care, such as mileage (e.g., 21 cents per mile for 2025), bus fares, taxi fares, and ambulance services, are also eligible. Home modifications made for medical purposes, such as constructing ramps, widening doorways, or installing grab bars, can also be included.

Documenting and Calculating Your Deduction

Accurate recordkeeping is important when claiming a medical expense deduction. Retain all receipts, invoices, and Explanation of Benefits (EOB) statements for medical, dental, or vision services and purchases. For transportation costs, maintaining a mileage log detailing dates, destinations, and medical purposes of trips is essential, along with records for tolls and parking fees. These records serve as evidence to substantiate your claims in the event of an IRS inquiry.

It is advisable to keep these records for at least three years from the date you filed your original return or two years from the date you paid the tax, whichever is later. Organizing these documents by tax year and category can significantly simplify the process of totaling your expenses.

To calculate your potential deduction, first sum all eligible unreimbursed medical expenses paid during the tax year. Next, determine 7.5% of your Adjusted Gross Income (AGI). Subtract this 7.5% AGI threshold from your total qualified medical expenses. The resulting amount is your deductible medical expense.

For example, if your AGI is $60,000 and your total qualified medical expenses are $8,000, the 7.5% threshold is $4,500 ($60,000 x 0.075). Your deductible amount would then be $3,500 ($8,000 – $4,500).

Claiming the Deduction on Your Tax Return

Once you have calculated your deductible medical expenses, report this amount on Schedule A (Form 1040), Itemized Deductions. The total from Schedule A is then carried over to your main tax form, Form 1040 or Form 1040-SR (U.S. Tax Return for Seniors).

On Schedule A, you will enter your total qualified medical expenses on Line 1. Your Adjusted Gross Income (AGI) from Form 1040, Line 11, will be entered on Line 2. You then calculate 7.5% of your AGI and enter this amount on Line 3. The deductible portion of your medical expenses, which is the amount exceeding 7.5% of your AGI, is entered on Line 4. This amount is then combined with your other itemized deductions to determine your total itemized deductions.

Tax software, a professional tax preparer, or paper filing can be used to complete and submit your return. Before submission, review your tax return carefully for accuracy. For detailed guidance and specific instructions, taxpayers can refer to official IRS resources, such as IRS.gov and Publication 502, “Medical and Dental Expenses.”