Medical Expense Deduction

Medical Expense Deduction refers to a tax deduction that allows taxpayers to deduct certain unreimbursed medical expenses from their taxable income.

To qualify for this deduction, medical expenses must exceed a specified percentage of the taxpayer’s adjusted gross income (AGI). For tax years 2021 and beyond, this threshold is 7.5%. Eligible expenses include costs for medical care, dental care, prescription medications, and other health-related services.

For example, if a taxpayer has an AGI of $50,000, they can only deduct the portion of their medical expenses that exceeds $3,750 (7.5% of $50,000). If their total medical expenses for the year amount to $6,000, they can deduct $2,250 ($6,000 – $3,750) on their tax return.