Are Medical Bills Tax-Deductible in 2025? A Complete Guide for Taxpayers

Healthcare costs can be a major burden, from surgeries and prescription drugs to long-term treatments and insurance premiums. If you’ve faced high medical expenses this year, you might be asking: Are medical bills tax-deductible in 2025? The answer is yes, but with important rules and limits set by the IRS. Let’s walk through how medical expense deductions work and whether you qualify.

Yes, Medical Bills Can Be Tax Deductible — But There’s a Catch

The IRS allows taxpayers to deduct qualified medical expenses, but only those that exceed 7.5% of your adjusted gross income (AGI) for the year.

Example:
If your AGI is $60,000, you can only deduct the amount of medical expenses that go over $4,500 (which is 7.5% of $60,000). So if you spent $7,000 on eligible medical costs, only $2,500 would be deductible.

This rule applies whether you’re paying for yourself, your spouse, or your dependents.

Who Can Claim the Deduction?

To deduct medical bills on your federal income tax return in 2025, you must:

• Itemize your deductions using IRS Schedule A (not take the standard deduction).

• Have eligible expenses that exceed 7.5% of your AGI.

• Pay for qualifying expenses during the tax year (not just incur the bill).

• Cover expenses for yourself, your spouse, or any dependent you claim on your return.

What Medical Expenses Are Tax Deductible?

According to IRS guidelines, the following qualify as deductible medical expenses:

• Doctor, surgeon, dentist, and specialist fees

• Hospital and nursing services

• Prescription medications and insulin

• Health insurance premiums (if paid out-of-pocket and not pre-tax)

• Mental health therapy and psychiatric care

• Long-term care services

• Medical equipment (e.g., crutches, wheelchairs)

• Dental treatments like fillings, extractions, and dentures

• Vision care (eyeglasses, contacts, eye exams)

Even transportation for medical care — like mileage, bus, or taxi fares — may be deductible.

What Medical Expenses Are NOT Deductible?

You can’t deduct the following:

• Cosmetic procedures (like facelifts or teeth whitening)

• Over-the-counter drugs (unless prescribed)

• General wellness programs (like gym memberships or vitamins)

• Expenses reimbursed by insurance or an employer

• Childcare or non-medical home help

How to Claim the Deduction

1. Keep all receipts, bills, and documentation of your medical spending.

2. Calculate your total eligible expenses for the year.

3. Find your adjusted gross income (AGI) from your tax return.

4. Subtract 7.5% of your AGI from your total expenses — the remainder is deductible.

5. File Schedule A with your 1040 tax return to itemize deductions.

Should You Itemize or Take the Standard Deduction?

In 2025, the standard deduction is expected to be around:

• $14,600 for single filers

• $29,200 for married couples filing jointly

If your total itemized deductions (including medical expenses, mortgage interest, property taxes, etc.) don’t exceed the standard deduction, you’re better off not itemizing — and therefore, can’t deduct your medical bills.

Pro Tip: Use an HSA or FSA

If you consistently have high medical expenses, consider using a Health Savings Account (HSA) or Flexible Spending Account (FSA). These accounts let you pay for medical costs tax-free, reducing your taxable income even before you think about deductions.

Final Thoughts: Can Medical Bills Save You Money at Tax Time?

So, are medical bills tax-deductible? Yes — but only if they exceed 7.5% of your AGI and you itemize your deductions. For people facing high healthcare costs, this deduction can offer meaningful relief, but it takes some planning, record-keeping, and a clear understanding of what counts.

Before filing your 2025 tax return, gather your documents, do the math, and speak with a tax advisor if you’re unsure. Every dollar counts when it comes to managing both your health and your finances.