How to Calculate Medical Expense Deductions

by Megan Martin, Demand Media
Many of your medical, dental and mental health expenses can be deducted from your taxes.


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Whether you are self-employed and pay for your own insurance or are covered under an employer or spouse's health insurance plan, outstanding out-of-pocket medical expenses are common. Knowing which expenses qualify for tax deductions can be tricky, so it is important to understand qualifications. Make sure you have receipts for all expenses you intend to deduct.

Step 1

Gather qualifying receipts for expenses you paid to prevent or treat a medical, dental or mental health problem. Include receipts for office visits, diagnoses including tests, treatments or preventative measures. Also include equipment or supplies you used for medical care. Add the receipt totals together.

Step 2

Gather receipts for any hospital stays or treatments. Include the cost of meals, lodging and other charges the hospital required you to pay. Add up the total cost of your hospital stays.

Step 3

Total the amount you paid for acupuncture, medical related massage, drug or alcohol abuse treatment or other inpatient treatment. Include any smoking cessation plans you participated in.

Step 4

Total the amount you spent on weight-loss programs intended to prevent or treat a disease, such as obesity. Do not include the cost of diet food or health clubs.

Step 5

Total the amount you spent on prescription drugs.

Step 6

Determine whether your estimated medical expenses exceeded 7.5% of your adjusted gross income. Multiply your total income by .075. Compare this number with the estimated total of your medical expenses. If you believe your total expenses were over 7.5% of your income, you qualify for the deduction.

Step 7

Total the amount you spent on transportation to and from medical care. Include conferences you attended regarding a disease that you, your spouse, child or other dependent has. Add any taxi or bus fare you incurred, as well as ambulance costs. Include gas, tolls and parking fees. Avoid including the cost of meals or lodging.

Step 8

Total the cost of external medical treatments including glasses, contacts, dentures, laser eye surgery, wheelchairs and hearing aids.

Step 9

Gather insurance premium statements. Add up the total premiums you paid for medical care. Avoid including premiums paid through an employer-sponsored health plan unless they appear in Box 1 of tax form W-2; otherwise they do not qualify. Include the amount you paid for medical insurance for yourself and your spouse if you are self-employed.

Step 10

Total all of the payments described above by adding them together.

Step 11

Gather evidence of any reimbursements you received for any of the medical bills described above. Include any payments made by your insurance company or other sources. Subtract this number from the total of your payments calculated above. This is the amount you can deduct from your taxes.

Things Needed

  • Receipts for all medical expenses incurred in the last year
  • Statements for reimbursements by your insurance company

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