How to Use Your Medical Expenses to Get a Surprise Tax Deduction

Most taxpayers know that medical expenses can be deductible—but here’s the catch: Most people don’t actually get to deduct them.

That’s because medical expenses have to exceed 7.5% of your Adjusted Gross Income (AGI) before you can deduct anything. So if you make $80,000, only the expenses above $6,000 count.

But what if I told you there are legal ways to make more of your medical costs deductible—even if you don’t think you qualify? Here’s how.

1. Pay for Medical Expenses with Pre-Tax Dollars

If you have a Health Savings Account (HSA) or a Flexible Spending Account (FSA), you’re already getting a tax break—because the money goes in before taxes. But what if you don’t have one?

Workaround: If your employer offers an HSA-eligible high-deductible health plan, consider switching. HSA contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for medical expenses. Even better, there’s no expiration date on the funds.

🚀 Pro Tip: If you’re self-employed, you might be able to deduct your health insurance premiums even if you don’t itemize deductions!

2. Lump Your Medical Expenses into One Year

Since you can only deduct medical costs if they exceed 7.5% of your AGI, spreading expenses over multiple years could mean you get no deduction at all.

✅ The Strategy: If you have upcoming medical procedures, schedule them in the same tax year to push your expenses over the threshold.

📌 Example:

• Your AGI is $60,000, so your medical expenses need to be over $4,500 to count.

• You have $3,000 in expenses this year and expect another $3,000 next year.

• If you wait, you might not deduct anything—but if you move procedures into the same year, you’d get a $1,500 deduction.

3. Deduct Travel Costs for Medical Appointments

Most people forget that medical-related travel is deductible—and it can add up!

🚗 Mileage: You can deduct 21 cents per mile (2024 rate) for trips to doctors, specialists, and pharmacies.

🚕 Transportation: Bus, taxi, or rideshare fares to medical appointments count.

🏨 Lodging: If you need to stay overnight for medical treatment, you can deduct up to $50 per night per person.

📌 Example:

• You drive 100 miles round-trip for weekly treatments (5,200 miles per year).

• 5,200 miles × $0.21 per mile = $1,092 deduction.

• Add parking fees, bus fares, or lodging, and this deduction could be even bigger.

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4. Deduct Home Improvements for Medical Reasons

If you make home modifications for medical necessity, those costs can be deductible—but only the portion that doesn’t increase your home’s value.

✅ Qualifying Expenses:

✔ Wheelchair ramps

✔ Widened doorways

✔ Bathroom modifications

✔ Air filters for medical conditions

📌 Example: You install a stair lift for $5,000, but it only increases your home’s value by $2,000. You can deduct $3,000.

🚨 Key Rule: Cosmetic upgrades don’t count—only medically necessary ones.

Final Thoughts: Don’t Miss Out on Hidden Medical Deductions

Most people assume they can’t deduct medical expenses, but with the right planning, you might be leaving money on the table.

✅ Use pre-tax accounts (HSA/FSA) to lower taxable income.

✅ Schedule medical expenses strategically to exceed the 7.5% threshold.

✅ Deduct travel and lodging costs related to treatment.

✅ Claim home modifications that are medically necessary.

Medical bills are painful enough—don’t let the IRS take more than they should. Let’s make sure you’re getting every deduction you deserve! 🚀