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.

Speak with a Medicare Advocate

Talk to one of our Licensed Medicare Agents today to find the right plans for you.

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.

Speak with a Medicare Advocate

Talk to one of our Licensed Medicare Agents today to find the right plans for you.

Recommended Articles

An elderly couple discusses their healthcare and insurance needs with another woman stock image

Moving? Here’s What Happens to Your Medicare Coverage

Jul 15, 2025

Medicare at 62 stock image

Does Retiring at Age 62 Make Me Eligible for Medicare?

Jun 16, 2022

Diagnosis incontinence stock image

Does Medicare Cover Incontinence Supplies?

Dec 22, 2022

Happy senior man and dentist assistant talking during appointment at dental clinic. stock photo

Finding the Best Dental Plans for Seniors

Jan 4, 2023

Cover image

What People Don't Realize About Medicare

Mar 27, 2023

Diagnosis overactive bladder stock image

Does Medicare Cover PTNS?

Dec 9, 2022

Close up of a woman sitting on a bed experiencing back pain

Does Medicare Cover TENS Units?

Nov 23, 2022

Cover image

What To Do If Your Medicare Advantage Plan Is Discontinued

Feb 26, 2024

Cover image

How Are Medicare Star Ratings Determined?

Sep 6, 2023

Medicare cost stock image

How Much Does Medicare Cost?

Jul 25, 2022

Union Station in Denver stock image

15 Best Ways for Seniors to Stay Active in Denver

Mar 9, 2023

Cover image

2025 Medicare Price Changes

Oct 30, 2023

senior gentleman wearing a suit working on his laptop outside of his office stock photo

How Your Employer Insurance and Medicare Work Together

Sep 27, 2022

Cover image

How Can I Get a Replacement Medicare Card?

Aug 14, 2023

Plastic surgeon handles a silicon implant

Does Medicare Cover Breast Implant Removal?

Jan 5, 2023

Cover image

10 Top Medicare Supplement (Medigap) Companies for 2025

Jul 14, 2025

Orthopaedist at work treating a bunion, stock photo

Does Medicare Pay for Bunion Surgery?

Nov 29, 2022

Cover image

Medicare Deductibles Resetting in 2025

Jan 18, 2024

More of our articles

13 Best Ways for Seniors to Stay Active in Indianapolis

13 Best Ways for Seniors to Stay Active in Phoenix

14 Best Ways for Seniors to Stay Active in Nashville

14 Best Ways for Seniors to Stay Active in Seattle

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

14 Best Ways to Stay Active in Charlotte

20 Questions to Ask Your Medicare Agent

Building the Future of Senior Healthcare

Can Doctors Choose Not to Accept Medicare?

Can I switch From Medicare Advantage to Medigap?

Can Medicare Advantage Plans be Used Out of State?

Comparing All Medigap Plans | Chart Updated for 2025

Does Medicare Cover a Spinal Cord Stimulator?

Does Medicare Cover Air Purifiers?

Does Medicare Cover an FMT?

Does Medicare Cover Cardiac Ablation?

Does Medicare Cover Cervical Disc Replacement?

Does Medicare Cover Cosmetic Surgery?

Does Medicare Cover Driving Evaluations?

Does Medicare Cover Flu Shots?

Does Medicare Cover Geri Chairs?

Does Medicare Cover Home Heart Monitors?

Does Medicare Cover Ilumya?

Does Medicare Cover Inspire for Sleep Apnea?

Does Medicare Cover Iovera Treatment?

Does Medicare Cover Ketamine Infusion for Depression?

Does Medicare Cover Krystexxa?

Does Medicare Cover Kyphoplasty?

Does Medicare Cover Linx Surgery?

Does Medicare Cover LVAD Surgery?

Does Medicare Cover Medical Marijuana?

Does Medicare Cover Nuedexta?

Does Medicare Cover Orthodontic Care?

Does Medicare Cover Qutenza?

Does Medicare Cover the Urolift Procedure?

Does Medicare Cover Xiafaxan?

Does Medicare Cover Zilretta?

Does Medicare Have Limitations on Hospital Stays?

Does Medicare Pay for Allergy Shots?

Does Medicare Pay for Antivenom?

Does Medicare pay for Opdivo?

Gap Health Insurance: The Secret Sidekick to Your High-Deductible Plan

Health Savings Accounts (HSAs) and Medicare

How Do Medicare Agents Get Paid?

How Does Medicare Cover Colonoscopies?

How Does Medicare Pay for Emergency Room Visits?

How Much Does a Medicare Coach Cost?

How Much Does Medicare Part A Cost in 2025?

How to Become a Medicare Agent

How to Deduct Medicare Expenses from Your Taxes

How to Enroll in Social Security

Is Fair Square Medicare Legitimate?

Is HIFU Covered by Medicare?

Is the Shingles Vaccine Covered by Medicare?

Last Day to Change Your Medicare Part D Plan

Medicare Consulting Services

Medicare Savings Programs in Kansas

Plan G vs. Plan N

The Fair Square Bulletin: October 2023

Turning 65 and Thinking of Keeping COBRA? Here’s Why It Usually Backfires

What Happens to Unused Medicare Set-Aside Funds?

What If I Don't Like My Plan?

What is a Medicare Beneficiary Ombudsman?

What Is Medical Underwriting for Medigap?

What is Plan J?

What is the Medicare ICEP?

What to Do When Your Doctor Leaves Your Network

What's the Deal with Flex Cards?

What's the Difference Between HMO and PPO 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 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

Fair Square Medicare

FSM symbol - 50