7 Surprising Medical Expenses That Are Tax Deductible

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Key takeaways:

  • If you itemize deductions on your tax return, you can deduct qualified medical expenses if they add up to more than 7.5% of your adjusted gross income. 
  • You may be eligible to deduct common medical expenses like eyeglasses and teeth cleanings. But you may also be able to deduct things like LASIK surgery, wigs, and medical transportation. 
  • It’s important to consult with a tax professional to determine which medical expenses you can deduct to avoid missing out on tax savings. 

Medical costs can add up, depending on the treatments you get and how often you need medical care. Even if you have insurance, you’ll probably have expenses you need to pay for out of pocket. 

The IRS allows certain taxpayers to save money on their tax return by deducting qualified medical and dental expenses, such as: 

  • Dozens of deductions: The IRS allows you to deduct expenses for many medically necessary products and services. Learn more about deductions you may be eligible to take, including expenses like surgeries, prescription medications, and dental and vision care.
  • What to know if you’re self-employed: Do you freelance or own your own business?Take a look at common medical expense deductions and the tax rules that every self-employed person should consider.
  • What about health insurance premiums? Find out if you can deduct health insurance premiums on your taxes and the amount you are eligible to deduct based on these factors.

It’s important to consult with a tax professional to get a better idea of what medical expenses you can deduct. It’s easy to overlook less common expenses that may also be tax deductible. 

How do I claim medical expenses on my taxes?

If you take the standard deduction, you will not be able to claim medical expenses on your taxes. You will need to itemize deductions to claim medical expenses. 

Itemizing your deductions requires you to list all your eligible expenses for the year and subtract the total from your adjusted gross income (AGI). If you claimed the standard deduction instead, you will receive a fixed deduction amount based on your filing status. 

Keep in mind that if you choose the itemized deduction, you will not be allowed to take the standard deduction.

Below are the steps you need to take to itemize deductions on your tax return: 

  1. Find your eligible expenses and calculate your total for the year. 
  2. Review the standard deduction for your filing status to see if it makes sense to claim the standard deduction or itemize. If your itemized deductions add up to more than your standard deduction, it may be a good idea to itemize your deductions. 
  3. If you choose to itemize deductions, you will need to report your qualified medical expenses on Schedule A. Enter your total unreimbursed medical expenses for yourself and other qualifying individuals, such as your spouse and any dependents you claim on your tax return on Line 1. 
  4. Follow the instructions on Schedule A to determine how much of your medical expenses you can claim on your taxes. 

What medical expenses are tax deductible?

The IRS provides a list of approved medical and dental expenses that you can claim on your tax return. You’re probably aware that you can deduct unreimbursed payments to doctors, dentists, and other medical practitioners. However, here are a few deductible items that may surprise you. 

1. Acupuncture 

Acupuncture is based in traditional Chinese medicine and is most commonly used to treat pain. It’s also used for medical conditions such as: 

Some insurance plans cover acupuncture treatments. Without insurance, acupuncture can cost more than $100 per session. But if you have to pay out-of-pocket for acupuncture, you can include it as a medical expense on your tax return. 

2. In vitro fertilization (IVF)

IVFis a medical treatment that can help people with fertility problems get pregnant. The procedure comes with a high price tag, costing roughly $12,000 per IVF cycle, and up to $25,000 if you include the cost of medications. 

Insurance may cover some IVF cycle costs. However, you can deduct out-of-pocket costs of IVF procedures performed on yourself, your spouse, or a dependent. You can also include the costs of temporary storage of eggs or sperm. 

3. LASIK surgery 

You may already know that you can deduct the cost of prescription eyeglasses and contact lenses on your tax return. But you can also deduct LASIK surgery, since it’s considered vision correction surgery. 

On average, LASIK costs around $4,200 for both eyes, depending on where you live and the type of laser used. LASIK is not considered medically necessary, so many health insurance plans won’t cover it. By deducting the out-of-pocket costs associated with LASIK on your tax return, you may be able to save some money. 

4. Service dogs

You generally cannot deduct pet expenses on your tax return, but you can deduct expenses related to a service animal such as a guide dog. Service dogs can help make life easier for individuals living with mental or physical disabilities. You can deduct expenses associated with your dog’s care, such as:

  • Food
  • Grooming
  • Training
  • Veterinary care

For expenses to be deductible, you must prove the following: 

  • The dog is medically necessary. A doctor’s prescription can serve as proof. 
  • The animal is trained to provide assistance for the specific medical condition. 

5. Wigs

Your wig may qualify as a tax write-off if certain medical requirements are met. The wig must be prescribed by a medical professional for hair loss related to a medical condition or treatment such as:

  • Alopecia 
  • Chemotherapy 
  • Head burn 

If your healthcare provider recommends a wig because of your medical condition, your wig purchase becomes a qualified medical expense. Cosmetic wigs won’t count as tax-deductible expenses.  

6. Medical transportation 

Generally, you can deduct the cost of traveling to a medical facility. For example, if you need to visit your healthcare provider for your annual appointment, you can deduct your travel costs on your tax return. Below are a few transportation costs you may be able to deduct: 

  • Ambulance service fees
  • Bus and train fare 
  • Gas
  • Parking fees 

7. Dentures 

If you’ve lost some of your natural teeth, you might consider dentures. But depending on the type of dentures you choose and your insurance plan, you could end up paying anywhere from $1,000 to $28,000. 

The amount you pay out of pocket for dentures can be deducted on your taxes. They are considered a qualified medical expense because they are a treatment designed to alleviate dental disease.  

What medical expenses are not tax deductible?

If an expense is not medically necessary, you won’t be able to deduct it on your tax return. And if your total medical expenses do not exceed 7.5% of your AGI, you also won’t be able to deduct them. 

For example, you typically can’t deduct cosmetic surgeries on your tax return. This includes the following: 

But if your cosmetic surgery is necessary for your medical condition, you will be able to deduct it on your taxes. 

What qualifies as a qualified medical expense?

A tax professional can help you determine what medical expenses are qualified. In general, the IRS defines qualified medical expenses as costs related to the “diagnosis, cure, mitigation, treatment, or prevention of disease.” If you have to pay for treatment for any part of the body, that may count. However, expenses that are solely beneficial to general health, such as gym membership, aren’t covered. 

How do I prove medical expenses?

It’s important to keep your receipts and documents for at least three years. This will help you prove your expenses if you are faced with an IRS audit.  

The bottom line

When you file your taxes, you may be able to deduct qualified medical expenses, such as dentures and medical transportation, if you itemize deductions. You can only deduct the portion of your expenses that exceeds 7.5% of your income. It’s a good idea to work with a tax professional to determine if you should itemize deductions and find out which medical expenses qualify.