Finance Maxxing
Deductions & Credits
Medical Expense Deduction
Deductible medical costs exceeding 7.5% of AGI.
Unreimbursed medical and dental expenses exceeding 7.5% of your AGI can be deducted if you itemize.
What Counts
| Deductible | Not Deductible |
|---|---|
| Doctor/dentist copays | Cosmetic surgery |
| Prescription drugs | Over-the-counter meds (generally) |
| Health insurance premiums (after-tax) | Pre-tax employer premiums |
| Medical travel costs | Gym memberships |
| Long-term care premiums (with limits) | General health maintenance |
| Hearing aids, glasses | Teeth whitening |
The 7.5% Floor
For AGI of $100,000, only medical expenses above $7,500 are deductible.
Example: $15,000 in medical expenses, $100,000 AGI:
$15,000 − ($100,000 × 7.5%) = $15,000 − $7,500 = $7,500 deductible
Tip: If you're planning expensive medical procedures, consider timing them in the same tax year to exceed the 7.5% floor.
Sources
Related Terms
More in Deductions & Credits
Standard Deduction
Fixed deduction amount based on filing status.
Itemized Deductions
Schedule A deductions that replace the standard deduction.
Above-the-Line Deductions
Deductions taken before AGI, regardless of itemizing.
SALT Deduction
State and local tax deduction, capped at $40,000 for 2025.
Mortgage Interest Deduction
Deduction for interest on up to $750K of mortgage debt.
Charitable Contributions
Tax deduction for donations to qualifying organizations.
Student Loan Interest Deduction
Up to $2,500 above-the-line deduction.