Are Your Medical Expenses Tax-Deductible? Here’s What You Need to Know

Medical expenses can offer a valuable tax break—but only if you know how to claim them correctly.

Under current tax law, you may deduct medical expenses only to the extent they exceed 7.5% of your adjusted gross income (AGI) and only if you itemize deductions instead of taking the standard deduction.

The Tax Cuts and Jobs Act (TCJA) raised standard deduction amounts, reducing the number of taxpayers who itemize. Here are the standard deduction amounts for 2025:

• Single or Married Filing Separately: $15,000 ($16,600 if 65+)

• Married Filing Jointly: $30,000 ($31,600 if one spouse is 65+, $33,200 if both are)

• Head of Household: $22,500 ($24,100 if 65+)

If your itemizable expenses don’t exceed these thresholds, you’ll likely benefit more from the standard deduction. But strategic planning, like "bunching" deductions in alternating years, may help you maximize your benefit.

The AGI threshold means that you can only deduct medical expenses that exceed 7.5% of your AGI, which includes all taxable income plus select deductions like retirement contributions and alimony.

Eligible medical expenses are broad—ranging from dental and eye care to chiropractic services and insurance premiums. Some surprising items, like home modifications for accessibility and stop-smoking programs, may also qualify.

Your tax advisor can help assess whether it’s advantageous for you to itemize and how to make the most of eligible deductions.

📞 Need help navigating medical deductions? Contact Verity CPAs at info@verity.cpa or 808.546.5026 to discuss your 2025 tax strategy today.