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?

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.‎

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 2025, you can deduct qualified medical expenses, including certain Medicare costs, that exceed 7.5% of your adjusted gross income (AGI).

  • For example, your AGI is $50,000 and your total medical expenses are $5,000.

    • 7.5% of AGI: $50,000 × 0.075 = $3,750

    • Amount Over 7.5% Threshold: $5,000 - $3,750 = $1,250

    • Deductible Amount: $1,250

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.

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

hand holding up Invisalign stock photo

Does Medicare Cover Orthodontic Care?

Nov 18, 2022

woman in a therapist office stock photo

Does Medicare Cover Hypnotherapy?

Nov 22, 2022

Cover image

What Is a Medicare Supplement SELECT Plan?

Apr 25, 2023

San Diego waterfront stock photo

Top 10 Physical Therapy Clinics in San Diego

Nov 18, 2022

Cover image

Medicare Deductibles Resetting in 2025

Jan 18, 2024

senior woman doing botox stock photo

Is Botox Covered by Medicare?

Jan 19, 2023

Caucasian nurse holding spine model against the patients backs. Clinic interior. stock photo

Does Medicare Cover Kyphoplasty?

Dec 9, 2022

Costco & Fair Square

Costco Pharmacy Partners with Fair Square

Jan 13, 2023

Cover image

When to Choose Medicare Advantage over Medicare Supplement

Jun 7, 2023

male driver taking notes from behind the wheel stock image

Does Medicare Cover Driving Evaluations?

Dec 1, 2022

Man with disability and service dog stock photo

Does Medicare Cover Service Animals?

Nov 29, 2022

Sleep apena stock image

Does Medicare Cover Inspire for Sleep Apnea?

Dec 27, 2022

breast cancer awareness ribbon stock image

Does Medicare Cover Piqray?

Dec 2, 2022

Doctor physician consulting with male patients in hospital exam room stock photo

Is PAE Covered by Medicare?

Nov 23, 2022

woman in a hospital wearing a bandana being shown information by her doctor stock photo

Medicare Advantage Plans for Disabled People Under 65

Mar 24, 2023

An illustrated image of a cartoon man using giant scissors to cut the "T" in the word "Tax"

How to Deduct Medicare Expenses from Your Taxes

Dec 28, 2022

doctor consulting their patient stock image

Does Medicare Cover the Urolift Procedure?

Dec 6, 2022

A cartoon signpost with HMO and PPO pointing in opposite directions

What's the Difference Between HMO and PPO Plans?

Dec 1, 2022

More of our articles

13 Best Ways for Seniors to Stay Active in Columbus

13 Best Ways for Seniors to Stay Active in Jacksonville

13 Best Ways for Seniors to Stay Active in Philadelphia

14 Best Ways for Seniors to Stay Active in Seattle

14 Best Ways to Stay Active in Charlotte

2024 Fair Square Client Retention and Satisfaction Report

2024 Fair Square NPS Report

Can I Change Medicare Advantage Plans Any Time? | Medicare Plans

Can I Choose Marketplace Coverage Instead of Medicare?

Can I switch From Medicare Advantage to Medigap?

Can Medicare Advantage Plans be Used Out of State?

Do All Hospitals Accept Medicare Advantage Plans?

Do I Need Medicare If My Spouse Has Insurance?

Do You Need Medigap if You're Eligible for Both Medicare and Medicaid?

Does Medicare Cover a Spinal Cord Stimulator?

Does Medicare Cover Bladder Sling Surgery?

Does Medicare Cover Boniva?

Does Medicare Cover Cala Trio?

Does Medicare Cover Cataract Surgery?

Does Medicare Cover Chiropractic Visits?

Does Medicare Cover Cold Laser Therapy (CLT)?

Does Medicare cover Deviated Septum Surgery?

Does Medicare Cover ESRD Treatments?

Does Medicare Cover Exercise Physiology?

Does Medicare Cover Fosamax?

Does Medicare Cover Hearing Aids?

Does Medicare Cover Hepatitis C Treatment?

Does Medicare Cover Home Heart Monitors?

Does Medicare cover Hyoscyamine?

Does Medicare Cover Iovera Treatment?

Does Medicare Cover LVAD Surgery?

Does Medicare Cover Macular Degeneration?

Does Medicare Cover Mental Health?

Does Medicare Cover Nexavar?

Does Medicare Cover Nuedexta?

Does Medicare Cover Ofev?

Does Medicare Cover Oxybutynin?

Does Medicare Cover Penile Implant Surgery?

Does Medicare Cover PTNS?

Does Medicare Cover Qutenza?

Does Medicare Cover Robotic Surgery?

Does Medicare Cover Shock Wave Therapy for Plantar Fasciitis?

Does Medicare Cover SI Joint Fusion?

Does Medicare Cover the WATCHMAN Procedure?

Does Medicare Cover Urodynamic Testing?

Does Medicare Cover Wart Removal?

Does Medicare Pay for Antivenom?

Does Medicare Require a Referral for Audiology Exams?

Does Retiring at Age 62 Make Me Eligible for Medicare?

Does Your Plan Include A Free Gym Membership?

Health Savings Accounts (HSAs) and Medicare

How Do Medicare Agents Get Paid?

How Do Medigap Premiums Vary?

How Does Medicare Cover Colonoscopies?

How Much Does Medicare Part A Cost in 2025?

Is the Shingles Vaccine Covered by Medicare?

Medicare Advantage MSA Plans

Medicare Consulting Services

Medicare Explained

Medicare Guaranteed Issue Rights by State

Medicare Supplement Plans for Low-Income Seniors

Medigap vs. Medicare Advantage

What Are Medicare Part B Excess Charges?

What Is Medical Underwriting for Medigap?

What People Don't Realize About Medicare

What To Do If Your Medicare Advantage Plan Is Discontinued

What to Do When Your Doctor Doesn't Take Medicare

What You Need to Know About Creditable Coverage

Which Medigap Policies Provide Coverage for Long-Term Care?

Why Is Medicare So Confusing?

Why You Should Keep Your Medigap Plan

Will Medicare Cover Dental Implants?

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 2025

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. © 2025 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