Tax Considerations for Cancer Patients

Most insurance plans will cover some of the bills, but cancer patients may have additional expenses that they pay for. Cancer patients may be able to deduct some of their out-of-pocket costs giving them a substantial tax break on their taxes.

Are you eligible for a cancer-related tax deduction?

Taxpayers who find it beneficial to itemize their tax deductions (instead of claiming the standard deduction) may be able to deduct their medical expenses like ones related to diagnosis, regular care, medication, and hospital stays if the expenses are more than 7.5% of their adjusted gross income.

Taxpayers can also deduct medical-related travel like mileage to drive to appointments, as well as the transportation costs for certain medical conferences . For 2026, you can deduct up to 20.5 cents per mile through June 30 and 23.5 cents per mile from July 1 onward. 

Self-employed taxpayers don’t have to itemize their deductions in order to deduct their health insurance premiums. They can deduct their self-employed health insurance premiums as a deduction to their income.

What you need to do

Tax deductible medical expenses are defined in the IRS Code as “the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body.” Treatments, ranging from chemotherapy and radiation to surgery, are expensive and your policy arrangement will have an effect on how much of your treatment will be covered. For rare cancers that require specialized care, including mesothelioma, travel is often necessary and the cost of travel may be tax deductible.

The IRS provides a comprehensive list of costs that qualify, including health insurance premiums not paid with pre-tax dollars. You may deduct an expense for care paid for  during the tax year you’re claiming it, regardless of when the care was provided.

When it comes time to file, itemized tax deductions such as medical expenses, mortgage interest, state and property taxes and charitable contributions, must exceed the increased “standard deduction” ($16,100 single, $32,200 married filing jointly) allowed by the IRS.

If you itemize your tax deductions, your medical costs must exceed 7.5% of Adjusted Gross Income (AGI) to be deducted. TurboTax will automatically figure out whether you benefit from claiming itemized tax deductions or claiming the standard deduction.

Don’t worry about knowing all these tax laws. TurboTax will ask simple questions and give you the tax deductions and credits you’re eligible for based on your answers.