Medical expense deductions

The Basics

Medical and dental expenses can be deducted on your tax return, but there's a catch: you can only deduct the amount that exceeds 7.5% of your Adjusted Gross Income (AGI).

How the Threshold Works

Let's say your AGI is $60,000:

• 7.5% of $60,000 = **$4,500**
• If your total medical expenses are $7,000, you can deduct **$2,500** ($7,000 − $4,500)
• If your total medical expenses are $3,000, you can deduct **$0** (below the threshold)

This means medical expenses are only worth itemizing if they're significant relative to your income.

What Qualifies

Medical and Dental Costs

• Doctor visits, surgeries, and hospital stays
• Dental work (cleanings, fillings, braces, dentures)
• Vision care (eye exams, glasses, contacts, LASIK)
• Mental health services (therapy, psychiatry)
• Prescription medications
• Insulin and diabetic supplies

Other Qualifying Expenses

• **Health insurance premiums** you pay out of pocket (not pre-tax payroll deductions)
• **Long-term care insurance** premiums (subject to age-based limits)
• **Medical equipment** (wheelchairs, hearing aids, crutches)
• **Travel for medical care** — mileage, parking, tolls, bus/train fare, even airfare if treatment isn't available locally

What Doesn't Qualify

• **Cosmetic procedures** (teeth whitening, liposuction, facelifts) unless medically necessary
• Over-the-counter vitamins and supplements (unless prescribed)
• Gym memberships (even if your doctor recommends exercise)
• Non-prescription sunglasses
• Funeral expenses

How to Enter in FileJoy

1. Click **Deductions** in the left sidebar
2. Select **Medical expenses**
3. Click **Add Medical Expense** for each category
4. Enter the description, amount, and date
5. Save

FileJoy automatically calculates the 7.5% AGI threshold and shows you how much is deductible. If your medical expenses don't exceed the threshold, FileJoy will let you know that the standard deduction may be a better choice.

Tips

• Keep all medical receipts and Explanation of Benefits (EOB) statements
• Track mileage for medical trips — it adds up fast
• If you have an HSA, expenses paid with HSA funds **cannot** also be deducted
• Consider bunching medical procedures into one year to exceed the threshold