What is the Medical expense deduction threshold?

The medical expense deduction threshold is the minimum percentage of adjusted gross income that unreimbursed healthcare costs must exceed before taxpayers can claim itemized deductions for qualifying medical expenses on Schedule A of their federal income tax return. Currently set at 7.5% of AGI for 2025, this floor means taxpayers can deduct only the amount by which total qualifying medical expenses exceed 7.5% of their adjusted gross income. For example, a taxpayer with $80,000 AGI must incur more than $6,000 in medical expenses before claiming any deduction, with only amounts above $6,000 qualifying for tax benefits. Strategic Health savings account contributions and Traditional 401k plan maximization help lower AGI, effectively reducing the threshold floor and increasing potential deduction amounts for taxpayers with substantial healthcare costs during the 2025 tax year.

Related Terms

What is Adjusted gross income?

What are Itemized deductions?

What is a Health savings account?

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