How to Deduct Medicare Expenses from Your Taxes
Fair Square Medicare

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?

Yes. You can deduct your Medicare expenses from your tax returns if you meet the eligibility requirements.

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:

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:

  • Medicare Part A premium

    • 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

  • Chiropractic services

  • 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

  • Cosmetic surgery

  • Late enrollment penalties

  • Electrolysis, or hair removal

  • Babysitting or childcare

  • Funeral expenses

  • 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.


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.

Learn More About Medicare

heart surgery stock image

How Much Does Open Heart Surgery Cost with Medicare?


senior african american man feeling pain in his knees from arthritis while on a couch stock photo

How Much Does Xeljanz Cost with Medicare?


Doctor talking to patients are explaining the treatment of a patient's illness stock photo

How Much Does Rexulti Cost with Medicare?


Human hands holding healthy lung shape made from paper on light blue background. stock photo

How Much Does Trelegy Cost with Medicare?


Female physiotherapist helping elderly man in wheelchair do exercises with dumbbells at health center stock photo

What Does Medicare Cover for Stroke Patients?


Doctor demonstrating upper cervical spine anatomy stock photo

Does Medicare Cover Cervical Disc Replacement?


Medicare Set Aside funds stock image

What Happens to Unused Medicare Set-Aside Funds?


older man suffering from stomach pain due to IBS stock photo

Does Medicare Cover Xiafaxan?


senior woman doing botox stock photo

Is Botox Covered by Medicare?


Health insurance form on a table with pen, calculator and glasses stock image

What You Need to Know About Creditable Coverage


Acute psoriasis on elbows is an autoimmune incurable dermatological skin disease stock photo

Does Medicare Cover Light Therapy for Psoriasis?


wart on the sole of a white man's foot stock photo

Does Medicare Cover Wart Removal?


woman sitting on sofa feeling pain in her foot at home stock photo

Does Medicare Cover Qutenza?


Nasal spray stock image

Can Medicare Help with the Cost of Tyrvaya?


Gloved hands with a scalpel begin a knee replacement surgery

Does Medicare Cover Iovera Treatment?


A doctor with a clipboard consults a female patient with cancer

Does Medicare Cover Inqovi?


Physiotherapist showing workout record on exercise bike

Does Medicare Cover Exercise Physiology?


A women's restroom sign that has been modified to show the stick figure woman needing to use the toilet

Does Medicare Cover Bladder Sling Surgery?


Your Medicare One-Stop-Shop

Your guide to Medicare Parts A & B, Medicare Advantage, and Medigap.

100% free.

Fair Square Medicare


Privacy Policy




Virgil Insurance Agency, LLC (DBA Fair Square Medicare) and 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 © 2022 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 or 1-800-MEDICARE to get information on all of your options.