IRS Publication 502: Medical & Dental Expenses
Medical expenses are among the most significant deductions for taxpayers with high healthcare costs — but they are also among the most scrutinized by the IRS. Publication 502 defines exactly what qualifies, how the 7.5% AGI floor works, and what documentation you need to survive an IRS audit.
Qualified Medical Expenses — What's Deductible
Doctor & Hospital Care
Payments to physicians, surgeons, dentists, chiropractors, psychologists, and other medical practitioners for diagnosis, treatment, and prevention.
Prescription Drugs & Insulin
Prescription medications are deductible. Over-the-counter drugs are only deductible if prescribed by a doctor. Insulin is deductible even without a prescription.
Medical Equipment
Wheelchairs, crutches, hearing aids, dentures, eyeglasses, contact lenses, prosthetic devices, and guide dogs for the blind or deaf.
Transportation for Medical Care
Mileage (22 cents per mile for 2024), bus, taxi, train, plane fares, ambulance service, and lodging ($50/night per person) for out-of-town medical treatment.
Home Improvements
Capital expenses for medical care: wheelchair ramps, widening doorways, installing railings, modifying bathrooms. Deductible to the extent they exceed the increase in property value.
What Is NOT Deductible
Cosmetic Surgery
Elective cosmetic procedures are not deductible. Surgery to correct a deformity from a congenital abnormality, accident, or disease IS deductible.
General Health Items
Toothpaste, toiletries, cosmetics, and general health club dues are not deductible — even if your doctor recommends exercise.
Illegal Operations
Payments for illegal medical operations or treatments are not deductible. Controlled substances obtained without a valid prescription are not deductible.
Reimbursed Expenses
Expenses reimbursed by insurance or your employer are not deductible. Only unreimbursed out-of-pocket expenses count toward the 7.5% AGI floor.