Medical Expense Deduction: What Qualifies and the 7.5% Rule

<p>The IRS allows you to deduct qualified medical expenses that exceed <strong>7.5% of your adjusted gross income (AGI)</strong>, but only if you <strong>itemize deductions</strong> on Schedule A.</p><h2>What Qualifies as a Medical Expense?</h2><ul><li>Health insurance premiums (not employer-paid)</li><li>Doctor, dentist, and hospital visits</li><li>Prescription medications</li><li>Vision care (glasses, contacts, LASIK)</li><li>Mental health services and therapy</li><li>Medically necessary home improvements (e.g., ramps, lifts)</li><li>Long-term care insurance premiums (limits apply by age)</li><li>Mileage to medical appointments (21 cents/mile in 2024)</li></ul><h2>What Does NOT Qualify?</h2><ul><li>Over-the-counter medications (unless prescribed)</li><li>Cosmetic surgery not medically necessary</li><li>Health club dues</li><li>Vitamins and supplements (unless prescribed)</li></ul><h2>The 7.5% Threshold Example</h2><p>If your AGI is $60,000, your threshold is $4,500 (7.5% × $60,000). If you had $8,000 in qualifying medical expenses, you can deduct <strong>$3,500</strong> ($8,000 – $4,500).</p><h2>HSA Strategy</h2><p>If you have a Health Savings Account (HSA), contributions are pre-tax, withdrawals for medical expenses are tax-free, and the funds roll over indefinitely — making it one of the most tax-efficient ways to pay medical costs.</p><p><em>Source: IRS Publication 502; Schedule A Instructions</em></p>