Medical expenses can be tax-deductible if they exceed a certain percentage of your adjusted gross income (AGI). For tax years 2021 and 2022, the threshold is 7.5% of your AGI. This means that only the amount of your medical expenses that exceeds 7.5% of your AGI can be deducted on your tax return.
To claim a deduction for medical expenses, you will need to itemize your deductions on Schedule A of your tax return. You will also need to keep records of your medical expenses, including receipts, bills, and any other documentation that shows the nature and amount of the expenses.
Eligible medical expenses include:
Doctor and dentist visits
Hospital stays
Prescription drugs
Medical equipment and supplies
Transportation costs for medical care (including mileage)
It’s important to note that medical expenses for cosmetic procedures are not tax-deductible unless they are medically necessary, such as a reconstructive surgery following an injury or illness.
Consult a tax professional or the Internal Revenue Service (IRS) for more information on the specific requirements for deducting medical expenses on your taxes.
