Healthcare can be expensive. Luckily, if you have Medicare, there are several ways to reduce your costs.
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.
Yes. You can deduct your Medicare
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.
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
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
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
Long-term care
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
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
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).
Calculate your total out-of-pocket costs. Then, compare them to the applicable threshold (7.5% of your AGI).
Itemize your deductions on your tax return using Form 1040
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
How to Become a Medicare Agent
Aug 30, 2023
Health Savings Accounts (HSAs) and Medicare
Jan 24, 2024
Does Medicare Cover Oxybutynin?
Dec 2, 2022
10 Top Medicare Supplement (Medigap) Companies for 2025
Jul 14, 2025
How to Deduct Medicare Expenses from Your Taxes
Dec 28, 2022
13 Best Ways for Seniors to Stay Active in Phoenix
Mar 6, 2023
Does Medicare Cover Cosmetic Surgery?
Nov 28, 2022
Medicare & Ozempic
Jul 20, 2023
Why You Should Keep Your Medigap Plan
Sep 21, 2023
Does Medicare Cover Qutenza?
Jan 13, 2023
What to Do When Your Doctor Leaves Your Network
Jul 15, 2025
Is PAE Covered by Medicare?
Nov 23, 2022
Does Medicare Cover Cartiva Implants?
Nov 29, 2022
Does Medicare Cover Medical Marijuana?
Jan 6, 2023
Can I Laminate My Medicare Card?
Dec 22, 2022
Medicare Advantage MSA Plans
May 17, 2023
What is the 8-Minute Rule on Medicare?
Dec 21, 2022
Fair Square Client Newsletter: AEP Edition
Oct 2, 2023
13 Best Ways for Seniors to Stay Active in Indianapolis
14 Best Ways to Stay Active in Charlotte
15 Best Ways for Seniors to Stay Active in Denver
20 Questions to Ask Your Medicare Agent
2024 Fair Square Client Retention and Satisfaction Report
Can Doctors Choose Not to Accept Medicare?
Can I Change Medicare Advantage Plans Any Time? | Medicare Plans
Can I Use Medicare Part D at Any Pharmacy?
Comparing All Medigap Plans | Chart Updated for 2025
Costco Pharmacy Partners with Fair Square
Denied Coverage? What to Do When Your Carrier Says No
Do All Hospitals Accept Medicare Advantage Plans?
Do I Need to Renew My Medicare?
Do You Need Medigap if You're Eligible for Both Medicare and Medicaid?
Does Medicare Cover Abortion Services?
Does Medicare Cover Air Purifiers?
Does Medicare Cover Bladder Sling Surgery?
Does Medicare Cover Boniva?
Does Medicare Cover Compounded Medications?
Does Medicare Cover Disposable Underwear?
Does Medicare Cover Driving Evaluations?
Does Medicare Cover Geri Chairs?
Does Medicare Cover Hearing Aids?
Does Medicare Cover Hoarding Cleanup?
Does Medicare Cover Ilumya?
Does Medicare Cover Jakafi?
Does Medicare Cover Ketamine Infusion for Depression?
Does Medicare Cover Kidney Stone Removal?
Does Medicare Cover Krystexxa?
Does Medicare Cover LVAD Surgery?
Does Medicare Cover Mental Health?
Does Medicare Cover Nexavar?
Does Medicare Cover Nuedexta?
Does Medicare Cover Ozempic?
Does Medicare Cover Robotic Surgery?
Does Medicare Cover RSV Vaccines?
Does Medicare Cover SI Joint Fusion?
Does Medicare Cover SIBO Testing?
Does Medicare Cover the Urolift Procedure?
Does Medicare Cover the WATCHMAN Procedure?
Does Medicare Cover Tymlos?
Does Medicare Cover Zilretta?
Does Medicare Pay for Allergy Shots?
Does Medicare Pay for Varicose Vein Treatment?
Does Medicare Require a Referral for Audiology Exams?
Does Your Medicare Plan Cover B12 Shots?
Everything About Your Medicare Card + Medicare Number
How Are Medicare Star Ratings Determined?
How Do Medigap Premiums Vary?
How Does Medicare Pay for Emergency Room Visits?
How Medicare Costs Can Pile Up
How Much Does a Pacemaker Cost with Medicare?
How Much Does Medicare Part A Cost in 2025?
How Much Does Open Heart Surgery Cost with Medicare?
How to Choose a Medigap Plan
How to Compare Medigap Plans in 2025
How to Enroll in Social Security
Is Balloon Sinuplasty Covered by Medicare?
Is Vitrectomy Surgery Covered by Medicare?
Medicare Consulting Services
Medicare Explained
Moving? Here’s What Happens to Your Medicare Coverage
Plan G vs. Plan N
The Fair Square Bulletin: October 2023
Turning 65 and Thinking of Keeping COBRA? Here’s Why It Usually Backfires
Welcome to Fair Square's First Newsletter
What Does Medicare Cover for Stroke Patients?
What is a Medicare Beneficiary Ombudsman?
What is the Medicare ICEP?
What's the Deal with Flex Cards?
Which Medigap Policies Provide Coverage for Long-Term Care?
Why Is Medicare So Confusing?
Get the Fair Square Bulletin
Medicare savings tips, helpful guides, and more.
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
Fair Square Medicare