Medical Expenses on Schedule A: Why the 7.5% Limit Matters
Published November 6, 2026
Medical and dental costs can be deducted on Schedule A (Form 1040), but only if you itemize. The deduction counts only the part of those expenses that is more than 7.5% of your adjusted gross income (AGI). This guide is general information. It is not advice about your return.
Step one: itemize
Schedule A is used for itemized deductions. Most people compare the total on Schedule A with the standard deduction and use the amount that applies. Our guide to the standard deduction or itemizing explains that choice. Medical costs only count if you itemize.
Step two: count only what you paid and did not get back
The expenses must be paid during the year and must not be compensated by insurance or otherwise. The IRS says this applies whether the payment comes to you or is made directly to the doctor, hospital, or other provider.
Medical care includes payments for the diagnosis, cure, mitigation, treatment, or prevention of disease. It also includes payments for treatments that affect any structure or function of the body.
Whose costs count
You can generally include medical and dental expenses you paid for yourself, your spouse, and your dependents.
Care in a nursing home or hospital
Amounts paid for inpatient hospital care or residential nursing home care can count when the availability of medical care is the main reason for being there. That includes the meals and lodging the hospital or nursing home charges. If medical care is not the main reason for living there, only the part of the cost that is for medical care counts.
What often counts
- Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, and psychologists.
- Insulin and prescription medicines.
- Eyeglasses, contact lenses, hearing aids, and false teeth.
- Transportation that is primarily for, and essential to, medical care.
- Premiums you pay for insurance that covers medical care.
What usually does not count
Expenses that are only beneficial to general health, such as vitamins or a vacation, do not count. Meals and lodging while you attend a medical conference cannot be deducted, even when the conference itself is about a chronic illness.
Why the 7.5% limit matters
Imagine an AGI of $50,000. Seven and a half percent of that is $3,750. The first $3,750 of medical costs gives no deduction. Only the amount above that line counts. The limit is figured on your AGI for the year, so a higher AGI raises the line and the same medical costs produce a smaller deduction. If your medical costs were $5,000, the deduction would be the $1,250 above the limit. This example uses made-up numbers to show the math, not a result for your return.
Records to keep
Keep receipts, insurance explanation-of-benefits statements, and pharmacy records. For each medical trip, write down the date, the place, and the reason for the trip. Keep the records with your tax papers for the year. Our guide to how long to keep tax records covers the retention timeline.
Common mistakes
- Counting costs that insurance already paid. Only unreimbursed amounts count.
- Adding the full total and forgetting the 7.5% limit.
- Counting vitamins or general wellness costs.
Next steps
Gather the medical costs you paid during the year, and set aside any amount that insurance covered. If your costs are close to the limit, keep every receipt, because one missing receipt can change the total. Calculate your AGI from your return. Then compare the Schedule A total with the standard deduction before you decide. If you are not sure about a category, check Publication 502 for the details.
Upload your documents and answer a few simple questions. Your preparer reviews every deduction and credit and lets you know when your return is ready to sign.
Sources: Sources: IRS, Topic no. 502, Medical and dental expenses (https://www.irs.gov/taxtopics/tc502); IRS, Publication 502 (2025), Medical and Dental Expenses (https://www.irs.gov/pub/irs-pdf/p502.pdf); Instructions for Schedule A (Form 1040) (2025) (https://www.irs.gov/pub/irs-pdf/i1040sca.pdf) This is general information, not advice about your specific return.
