2024 Medical Expense Deduction Income (AGI) Limit

The IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses for the year that exceeds 7.5% of their adjusted gross income (AGI), found on line 11 of Tax Form 1040.

[Prior year updates] You are only allowed to deduct your medical/dental expenses if the total paid is at least 10% of your Adjusted Gross Income (AGI) and you must itemize your deductions. However, if you or your spouse are 65 or older, your threshold is reduced to 7.5% to meet the deduction requirement. This deduction is the hardest for the majority of Americans to meet. You are allowed to deduct the following expenses:

List of Medical Deductions
Abortion – done legallyLaboratory FeesFertility EnhancementTherapyBraille Books and MagazinesNursing Home
AcupunctureLead Based Paint RemovalGuide Dog/Service AnimalTransplantsBreast Pump and Pumping SuppliesNursing Services
Alcoholism – inpatient treatment & qualified mileageLegal Fees to get authorized treatment for mental healthHealth InstitutePublic Transportation to get to medical appointmentsSpecial Equipment installed in home for disabledOperation/Surgery
AmbulanceLifetime Care – Advanced PaymentsHMOTrips to another city for treatmentSpecial Equipment installed in car for disabledOptometrist
Annual Physical ExamLodgingHearing AidVasectomyChiropractorOsteopath
Artificial LimbLong Term CareHospital ServicesWeight Loss Program Fees – if medically diagnosed by doctorChristian Science PractitionerOxygen
Artificial TeethMealsHealth Coverage Tax CreditWheelchairContact LensesPhysical Exam
BandagesMedical ConferencesEmployer Sponsored Health Insurance, only if it is included on your W2WigCrutchesPregnancy Test Kit
Birth Control PillsMedical Information PlanMedicare A,B, and D PremiumsXraysDental TreatmentPsychiatric Care
Body ScanMedicinesPrepaid Insurance PremiumsSpecial Home to care for Disabled PersonDiagnostic DevicesPsychoanalysis
Eye ExamSterilizationEye SurgerySub Captioning device on TV for the deafDisabled Dependent Care ExpensesPsychologist
EyeglassesStop Smoking ProgramsDrug Addiction – inpatient treatmentSpecial Education

For example, if you have a modified adjusted gross income of $45,000 and $5,475 of medical expenses, you would multiply $45,000 by 0.10 (10 percent) to find that only expenses exceeding $4,500 can be deducted. This leaves you with a medical expense deduction of $975 (5,475 – 4,500).

You may also deduct mileage in your own car that is used for medical purposes. The medical standard mileage rate for 2016 is 19 cents per mile. You cannot claim expenses that were paid by a Health Savings Account (HSA).

The limit at which you can claim these expenses was increased from 7.5 percent to 10 percent of 2013 adjusted gross income (AGI). Prior to 2013, you could claim an itemized deduction for medical expenses paid for you, your spouse and your dependents, to the extent those expenses exceeded 7.5 percent of your AGI.

But thanks to the health care laws – known as Obamacare – an even higher threshold of 10 percent of AGI now applies to most taxpayers. There is a temporary three year exemption to the higher limit if either you or your spouse will be 65 or older as of December 31, 2013.

The higher 10 percent AGI threshold will not affect these groups until Dec. 31, 2016. But beginning Jan. 1, 2017, all taxpayers will only be able to deduct the amount of the total non-reimbursed allowable medical care expenses that exceeds 10% of their annual AGI.

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