Are medical bills tax deductible and what are the conditions to do so?

An important fact for many this tax season is that the IRS allows you to deduct certain medical expenses on your tax return. For tax year 2023, the IRS allows taxpayers to take deductions for their medical expenses as long as they have unrefunded qualified bills that exceed 7.5% of the taxpayer’s adjusted gross income (AGI).

Medical expenses are only deductible to the extent that they exceed a certain percentage of your adjusted gross income (AGI), which is 7.5%. This means that you can only deduct medical expenses that exceed 7.5% of your AGI.

For the deduction to be valid, you must itemize it on Schedule A of your tax return.

Which medical expenses are valid?

You can only deduct medical expenses that qualify as “qualified medical expenses” according to the IRS.

The IRS allows you to deduct unreimbursed medical expenses for: preventive care, treatments, surgeries, dental and vision care, visits to psychologists and psychiatrists, prescription drugs, the purchase of glasses, contact lenses, dentures and hearing aids, as well as expenses incurred if you traveled to receive qualified medical care.

Any medical expenses you have been reimbursed for, through work or insurance, can not be deducted.