Fair Square Medicare Wordmark

How to Deduct Medicare Expenses from Your Taxes

An illustrated image of a cartoon man using giant scissors to cut the "T" in the word "Tax"
By Daniel Petkevich
Dec 28, 2022

Deducting Medicare expenses helps you get the most out of your tax return

Healthcare can be expensive. Luckily, if you have Medicare, there are several ways to reduce your costs.

Stay Up to Date on Medicare!

Join the Fair Square Medicare Newsletter to stay informed on cost savings, changes to Medicare, and other valuable healthcare information.
Certain Medicare costs qualify as tax deductions. Claiming these medical expenses on your tax return can lower your taxable income (i.e., reduce your taxes).
Let's dive deeper into the types of Medicare expenses that qualify for tax deductions and discuss how to claim them on your tax return.

Are Medicare Expenses Tax Deductible?

If you claim the standard deduction, check the current amount before filing your tax return. (Standard deductions change periodically).
Here's a list of standard deductions for 2022 and 2023:
Visual asset.
Standard Deductions for 2022 & 2023
Note: To maximize your tax benefits, you might want to itemize your deductions rather than claim the standard deduction. However, this is possible only when the total of your itemized deductions, including charitable donations, medical expenses, and state and local taxes, is higher than your standard deduction.

How Much Can I Deduct From My Taxes?

‎The amount of tax-deductible Medicare expenses depends on your:
  • Adjusted Gross Income (AGI)
  • Medicare expenses
In order to qualify for a tax deduction, your Medicare expenses must exceed 7.5% of your AGI (adjusted gross income). You can only claim a deduction for costs above this threshold.
  • For example, you have $5,000 in medical expenses, and your AGI is $40,000. You can claim a deduction for any amount over $3,000 (i.e., 7.5% of $40,000)
    • $40,000 x 7.5% = $3,000
    • $5,000 - $3,000 = $2,000

What Medicare Expenses Are Tax Deductible?

You can claim a tax deduction for medical expenses you paid for yourself, your spouse, or a qualifying dependent.
Here are some examples of tax-deductible Medicare expenses:
    • Most people are not required to pay the Medicare Part A premium because they or their spouse have paid Medicare taxes while working. However, if you're required to pay the Part A premium and are not yet collecting Social Security benefits, you may be able to claim a tax deduction for these premiums
  • Medicare Part B premium
  • Medicare Part D premium
  • Medicare Advantage (Part C) premium
  • Medigap

    premium
  • Long-term care

    insurance premium
    • You may be able to deduct a portion of your long-term care insurance premiums on your taxes based on your age. The amount varies depending on age and ranges from $450 for those 40 or younger to $5,640 for those 71 or older
  • Co-pays, deductibles and coinsurance for Part A, B or D services
In addition, you can also deduct taxes for the following medical expenses:
  • Acupuncture
  • Ambulance services
  • Annual Physical Examination
  • Cars
    • Vehicle modification costs for a disabled driver
    • Costs incurred to modify a car for wheelchair users, including interior and exterior changes
    • Transportation costs for medical appointments, such as the cost of gas and oil
  • Dental services
  • Eye exams & eyeglasses
  • Crutches
  • Home Improvements
  • Weight-loss programs
  • Wheelchairs
  • X-ray services

What Medical Expenses Are Not Tax Deductible?

Some medical costs don't qualify for tax deductions. Examples of non-tax-deductible expenses include the following.
  • Nonprescription Drugs
    • Except for insulin, nonprescription drugs (e.g., over-the-counter medications and nutritional supplements) generally don't qualify for tax deductions
  • Late enrollment penalties
  • Electrolysis, or hair removal
  • Babysitting or childcare
  • Health Club Dues
  • Hair transplants
  • Personal use items (toothbrushes, floss, toilet paper, etc.)
  • Teeth whitening
  • Weight loss program
  • Veterinary fees

How Do I Deduct Medical Expenses From My Taxes?

1. Keep Track of Your Medicare Expenses

Keep track of all your out-of-pocket costs, including receipts, bills, and statements from your healthcare provider. You will need to provide this documentation if you are audited by the Internal Revenue Service (IRS).

2. Calculate Your Deduction

Calculate your total out-of-pocket costs. Then, compare them to the applicable threshold (7.5% of your AGI).

3. Itemize if You Are Eligible

Itemize your deductions on your tax return using

Form 1040

, Schedule A.

4. Claim the Deduction on Your Tax Return

Complete the appropriate tax form and enter the total amount of your deduction. Attach any supporting documentation to your tax return. File your tax return by the deadline.

Takeaway

Tax deductions can help offset Medicare expenses, lower your taxable income, and potentially increase your tax refunds. Some qualifying Medicare expenses include premiums, out-of-pocket costs, and more.
To claim your tax deductions, follow these steps:
  • Keep track of your Medicare expenses
  • Calculate your deduction
  • Itemize if you're eligible
  • Claim the deduction on your tax return
If you're not sure about your deduction eligiblity or have questions about the process, give us a call at 1-888-376-2028. At

Fair Square Medicare

, we'll help you identify tax-deductible expenses that will bring you financial relief.

Stay Up to Date on Medicare!

Join the Fair Square Medicare Newsletter to stay informed on cost savings, changes to Medicare, and other valuable healthcare information.

Recommended Articles

Dripping medication stock photo
Does Medicare Cover Ketamine Infusion for Depression?
Nov 23, 2022
Prescription Drug Bars
Estimating Prescription Drug Costs
May 25, 2020
Senior person holding tissue roll near a toilet bowl, using walker to walk to the bathroom stock photo
Does Medicare Cover Disposable Underwear?
Dec 8, 2022
Pile of junk in a house, hoarder room pile of household equipment needs clearing out stock photo
Does Medicare Cover Hoarding Cleanup?
Jan 10, 2023
Philadelphia skyline at sunset stock image
13 Best Ways for Seniors to Stay Active in Philadelphia
Mar 7, 2023
breast cancer awareness ribbon stock image
Does Medicare Cover Piqray?
Dec 2, 2022
Senior couple going over their finances stock photo
Explaining IRMAA on Medicare
Dec 21, 2022
Rattlesnake biting on a hiker's boot stock image
Does Medicare Pay for Antivenom?
Dec 6, 2022
plastic surgeons standing over a patient stock image
Does Medicare Cover Cosmetic Surgery?
Nov 28, 2022
Mental health stock photo
Does Medicare Cover Mental Health?
Oct 12, 2022
bearded man holding his head in confusion looking at his laptop stock image
Why Is Medicare So Confusing?
Apr 19, 2023
Medigap plan letters on outstretched fingers stock image
How Do Medigap Premiums Vary?
Apr 12, 2023
Medicare at 62 stock image
Does Retiring at Age 62 Make Me Eligible for Medicare?
Jun 16, 2022
Close up of a woman sitting on a bed experiencing back pain
Does Medicare Cover TENS Units?
Nov 23, 2022
COVID-19 at home test stock image
Does Medicare Cover COVID Tests?
Dec 21, 2022
Sleep apena stock image
Does Medicare Cover Inspire for Sleep Apnea?
Dec 27, 2022
Cover image
The Fair Square Bulletin: The End of the COVID Emergency Declaration
May 30, 2023
Heart on Heart Rhythm Background Concept stock photo
Does Medicare Cover the WATCHMAN Procedure?
Dec 1, 2022

More of our articles

13 Best Ways for Seniors to Stay Active in Columbus

14 Best Ways for Seniors to Stay Active in Seattle

14 Best Ways for Seniors to Stay Active in Washington, D.C.

2024 "Donut Hole" Updates

2024 Medicare Price Changes

Are Medicare Advantage Plans Bad?

Building the Future of Senior Healthcare

Can I Change My Primary Care Provider with an Advantage Plan?

Can Medicare Advantage Plans be Used Out of State?

Can Medicare Help with the Cost of Tyrvaya?

Comparing All Medigap Plans | Chart Updated for 2023

Costco Pharmacy Partners with Fair Square

Do All Hospitals Accept Medicare Advantage Plans?

Do Medicare Supplement Plans Cover Dental and Vision?

Does Medicare Cover Air Purifiers?

Does Medicare Cover Bariatric Surgery?

Does Medicare Cover Cardiac Ablation?

Does Medicare Cover Cartiva Implants?

Does Medicare cover Deviated Septum Surgery?

Does Medicare Cover Diabetic Eye Exams?

Does Medicare Cover Driving Evaluations?

Does Medicare Cover Flu Shots?

Does Medicare Cover Fosamax?

Does Medicare Cover Geri Chairs?

Does Medicare Cover Hepatitis C Treatment?

Does Medicare Cover Hypnotherapy?

Does Medicare Cover Ilumya?

Does Medicare Cover Incontinence Supplies?

Does Medicare Cover Jakafi?

Does Medicare Cover Kidney Stone Removal?

Does Medicare Cover Linx Surgery?

Does Medicare Cover LVAD Surgery?

Does Medicare Cover Nexavar?

Does Medicare Cover Orthodontic Care?

Does Medicare Cover Qutenza?

Does Medicare Cover Robotic Surgery?

Does Medicare Cover Shock Wave Therapy for Plantar Fasciitis?

Does Medicare Cover SIBO Testing?

Does Medicare Cover Stair Lifts?

Does Medicare Cover Vitamins?

Does Medicare Cover Xiafaxan?

Does Medicare Cover Zilretta?

Does Medicare Pay for Bunion Surgery?

Does Medicare pay for Opdivo?

Does Medicare Pay for Varicose Vein Treatment?

Does Medicare Require a Referral for Audiology Exams?

Fair Square Bulletin: We're Revolutionizing Medicare

Finding the Best Vision Plans for Seniors

Health Savings Accounts (HSAs) and Medicare

How Are Medicare Star Ratings Determined?

How Can I Get a Replacement Medicare Card?

How Does Medicare Cover Colonoscopies?

How Does the End of the COVID-19 Public Health Emergency Affect Your Medicare?

How is Medicare Changing in 2023?

How Much Does Medicare Part B Cost in 2023?

How Much Does Rexulti Cost with Medicare?

How to Become a Medicare Agent

How Your Employer Insurance and Medicare Work Together

Is Emsella Covered by Medicare?

Is Gainswave Covered by Medicare?

Medicare & Ozempic

Should You Work With A Remote Medicare Agent?

The Fair Square Bulletin: February 2024

The Fair Square Bulletin: July 2023

What Does Medicare Cover for Stroke Patients?

What Happens to Unused Medicare Set-Aside Funds?

What To Do If Your Medicare Advantage Plan Is Discontinued

What You Need to Know About Creditable Coverage

When Can You Change Medicare Supplement Plans?

Why You Should Keep Your Medigap Plan

Will Medicare Cover Dental Implants?

Will Medicare Cover it?

Your Medicare One-Stop-Shop

Your guide to Medicare Parts A & B, Medicare Advantage, and Medigap. 100% free.
Get the Fair Square Bulletin

Medicare savings tips, helpful guides, and more.

About

Medicare 101

Current Clients

Medicare Supplement Plans

Medicare Advantage Plans

Fair Square 2024

Terms of Use
Notice of Privacy Practices

Virgil Insurance Agency, LLC (DBA Fair Square Medicare) and www.fairsquaremedicare.com are privately owned and operated by Help Button Inc. Medicare supplement insurance plans are not connected with or endorsed by the U.S. government or the federal Medicare program. This is a solicitation of insurance. A licensed agent/producer may contact you. Medicare Supplement insurance is available to those age 65 and older enrolled in Medicare Parts A and B and, in some states, to those under age 65 eligible for Medicare due to disability or End-Stage Renal disease. Virgil Insurance Agency is a licensed and certified representative of Medicare Advantage HMO, HMO SNP, PPO, PPO SNP and PFFS organizations and stand-alone PDP prescription drug plans. Each of the organizations we represent has a Medicare contract. Enrollment in any plan depends on contract renewal. The plans we represent do not discriminate on the basis of race, color, national origin, age, disability, or sex. Plan availability varies by region and state. For a complete list of available plans please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov. © 2024 Help Button Inc

We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.

MULTIPLAN_FairSquareMedicare_01062022_M