Health Care When Can You Claim a Tax Deduction for Health Insurance? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Magaly Olivero Published Mar 31, 2016 - [Updated Sep 26, 2023] 1 min read Reviewed by Katharina Reekmans, Enrolled Agent Claiming medical and dental tax deductions can lead to big savings – if you had major out-of-pocket expenses or your income was lower than expected. If you itemize your deductions, you can only deduct the amount of your total medical and dental expenses that exceed 7.5% of your annual adjusted gross income. Self-employed individuals can deduct 100% of medical and dental costs, including premiums. The IRS allows deductions for out-of-pocket expenses for medical, dental, and vision care, prescription drugs and insulin, wellness programs, travel costs for medical care, and much more. You must have paid for the expenses in the taxable year. In some cases, you can deduct insurance premiums for policies that cover medical care and some qualifying long-term care insurance. But you can’t deduct the premium amount paid by your employer or an advanced tax credit from the Health Insurance Marketplace. Be aware, though, that there’s no double dipping. You can’t deduct amounts paid into tax-free health saving accounts (HSA) and flexible spending accounts (FSA). You also can’t claim a deduction if the bill was paid by your insurer. Deducting medical expenses can lower your modified adjusted gross income, which can protect you from having to pay back tax credits when filing your taxes because you lost income due to medical expenses. For a full list of eligible deductions, see IRS Publication 502, Medical and Dental Expenses, and itemize the deductions on Form 1040, Schedule A. Previous Post How to Show Proof of Health Insurance For Taxes Next Post Education Tax Deductions and Credits to Maximize Your Tax Refund Written by Magaly Olivero Magaly Olivero is an award-winning writer and has written for many national and regional media outlets, as well as corporate and nonprofit clients in the healthcare, tax and education industries. Her publishing credits include U.S. News and World Report, Newsweek, The New York Times, Working Woman, Better Homes and Gardens and the Connecticut Health Investigative Team. Magaly is a recipient of a National Journalism Fellowship from the University of California Annenberg School of Communication and a Health Coverage Fellowship from the Blue Cross Blue Shield of Massachusetts Foundation. More from Magaly Olivero Leave a ReplyCancel reply Browse Related Articles Deductions and Credits What Medical Expenses Can I Deduct? Taxes 101 Sick! Can I Deduct That? Deductible Medical Expenses Tax Deductions and Credits Are Medical Expenses Tax Deductible? Life What Medical Expenses are Tax Deductible? Tax Deductions and Credits What are Tax Deductible Medical Expenses? Tax Deductions and Credits Tax Considerations for Cancer Patients Self-Employed How To Manage Your Self-Employment Deductions Year Roun… Health Care When Can You Claim a Tax Deduction for Health Insurance… Tax Deductions and Credits Real Talk Series: Do My Cancer Treatments Affect My Tax… Self-Employed How Much are Medicare Deductions for the Self-Employed?