income tax medical travel expenses 2022

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Irs overview the deduction of medical travel expenses.

Certain expenses incurred in traveling for medical purposes are deductible for U.S. federal income tax purposes.  Internal Revenue Code Section 262(a) generally prohibits the deduction of personal or living expenses unless specifically allowed by the Code.  Section 213 allows a deduction for expenses paid for medical care to the extent that such expenses exceed 7.5 percent of adjusted gross income.  

Therefore you may deduct the cost for certain types of medical procedures obtained overseas.Medical care is defined in part as amounts paid for the diagnosis cure mitigation treatment or prevention of disease or for the purpose of affecting any structure or function of the body and for transportation primarily for and essential to medical care.  

A deduction is allowed for up to $50 per person for each night for lodging while away from home primarily for and essential to medical care if such care is provided by a physician in a licensed hospital (or in a medical care facility which is equivalent to a licensed hospital) and there is no significant element of personal pleasure recreation or vacation in the travel away from home.  

Therefore it is possible that the $50 per person deduction may be used for funds paid for room and board at a hospital or medical care clinic while obtaining healthcare overseas.A deduction is also allowed for transportation expenses of a nurse or other person who can give injections medications or other treatment required by a patient who is traveling to get medical care and is unable to travel alone.  

Section 213 specifically excludes a deduction for cosmetic surgery or other similar procedures unless the surgery or procedure is necessary to ameliorate a deformity arising from or directly related to a congenital abnormality a personal injury resulting from an accident or trauma or disfiguring disease.When combining travel for medical purposes with tourism determining the amount of the deductible portion can be problematic.  

When reviewing a taxpayer's return claiming such deductions the Internal Revenue Service will look at expenditures first as non- deductible personal expenses and allow only specifically documented medical expenses.  It is therefore important to first obtain a doctor's written statement stating the medical purpose of the trip and the necessity of the travel companion if applicable.  

All documented transportation to and from the medical destination allowable lodging expenses during treatment and recovery and hospital and physician costs would then be deductible.  Any additional costs of a vacation or pleasure nature would not be deductible.

Filing your personal income taxes each year in America can create a headache warranting its own medical care.  Fortunately Uncle Sam has created some pain relievers you can use that may reduce the amount you owe for healthcare received overseas. ‍

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How to Claim a Tax Deduction for Medical Expenses in 2024

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If you or your dependents have been in the hospital or had other costly medical or dental expenses, keep those receipts — they could help cut your tax bill. Here's a look at how the medical expense deduction works and how you can make the most of it.

Medical expense deduction 2023

For 2023 tax returns filed in 2024, taxpayers can deduct qualified, unreimbursed medical expenses that are more than 7.5% of their 2023 adjusted gross income . The 7.5% threshold used to be 10%, but legislative changes at the end of 2019 lowered it.

Example: If your adjusted gross income is $40,000, anything beyond the first $3,000 of medical bills — or 7.5% of your AGI — could be deductible. That means if you had $10,000 in medical bills, you may be able to write off $7,000 worth of those expenses.

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What kind of medical expenses are tax deductible?

IRS Publication 502 has the full list, but in a nutshell here's what counts as a medical expense [0] Internal Revenue Service . IRS Publication 502 . Accessed Feb 16, 2024. View all sources .

Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists and other medical practitioners.

Hospital and nursing home care.

Acupuncture.

Addiction programs, including for quitting smoking.

Weight-loss programs for doctor-diagnosed diseases (but food and health club dues usually don’t count).

Insulin and prescription drugs.

Admission and transportation to medical conferences about diseases that you, your spouse or your dependents have (but meals and lodging don’t count).

Dentures, eyeglasses, contacts, hearing aids, crutches, wheelchairs and service animals.

Transportation costs to and from medical care.

Insurance premiums for medical care or long-term care insurance if they’re not paid by your employer and you pay out of pocket after taxes.

Other rules for the medical expense deduction

You can only include the medical expenses you paid during the year.

You can’t include expenses you were reimbursed for (so if insurance paid the bill, it’s not deductible) [0] Internal Revenue Service . IRS Publication 502 . Accessed Feb 16, 2024. View all sources .

What kind of medical expenses are not tax deductible?

Funeral expenses.

Over-the-counter medicines.

Toothpaste, toiletries and cosmetics.

Most cosmetic surgery.

Nicotine gum and patches that don't require a prescription.

How to claim the medical expense deduction

You'll need to take the following steps.

Itemize on your taxes

First, you’ll need to itemize instead of taking the standard deduction . For reference, the standard deduction for tax year 2023 ranges from $13,850 to $27,700, depending on your filing status. If your standard deduction ends up being less than your itemized deductions, you may want to itemize to save money. On the other hand, if your standard deduction is more than your itemized deductions, taking the standard deduction will save you some time. (Read more about itemizing versus taking the standard deduction. )

Use Schedule A

Schedule A allows you to do the math to calculate your deduction. Your tax software can walk you through the steps.

Is it worth claiming medical expenses on taxes? Consider your filing status

Filing separately if you’re married could get you a bigger medical expense deduction, but this move is risky because you might lose other tax breaks. Let’s say your spouse had $6,000 in medical bills last year. If you file jointly and your combined AGI is $100,000, then only the portion of your medical bills over 7.5% of that — or the portion over $7,500 — is deductible. So in this scenario, you can’t deduct any of your $6,000 in medical bills.

Now, let’s say you file separately . Your AGI is $75,000 and your spouse’s AGI is $25,000. Because the medical bills are your spouse’s, they could deduct anything over 7.5% of that $25,000 AGI, or $1,875. That would mean a $4,125 tax deduction for filing separately.

» MORE: See what tax filing status you should use

Keep good records

Hang onto those bills, and ask for records from your pharmacy or other care providers to fill in the holes, says Peter Gurian, a Dallas-area certified public accountant.

“If you're taking this deduction, you're probably pretty sick or you've got some problems that need to be dealt with. If that's the case, then the key is to really do a good job of keeping track of every single expense and expenditure,” he says.

State thresholds for the medical expense deduction

Your state might have a lower AGI threshold, which could save you money, says Chris Whalen, a certified public accountant in Red Bank, New Jersey. In New Jersey, for example, the AGI threshold for deducting medical expenses is just 2%, which means taxpayers there might get a break on their state income taxes even if they can’t get one on their federal income taxes.

Whalen says it’s important to find out what your state’s rule is; you might leave money on the table otherwise.

“I see it every year, all the time,” he says.

On a similar note...

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• Tax Credits & Deductions

Rules for Claiming the Medical Expense Tax Deduction

Allowable medical expense deductions, who can receive treatment.

• The Deduction and the AGI Threshold
• Itemize to Claim the Deduction
• Pre-Tax Expenses Aren't Deductible
• Special Rules for Health Insurance

Frequently Asked Questions (FAQs)

sturti / Getty Images

Most taxpayers can claim medical expenses that exceed 7.5% of their adjusted gross incomes (AGIs), subject to certain rules. Though the deduction seems simple, there are a variety of rules about taking the deduction that you should know before filing your taxes.

Key Takeaways

• You can deduct medical expenses across a wide range of categories.
• You cannot deduct expenses paid for items like vitamins that provide general health benefits.
• Many transportation-related expenses relevant to your medical care can be deducted.
• Employer-sponsored health care premiums usually aren't deductible, but you can deduct premiums for Medicare Part B and Part D.

The IRS defines qualifying medical expenses as those related to the "diagnosis, cure, mitigation, treatment, or prevention of a disease or condition affecting any part or function of the body." To be tax deductible, a medical expense generally must be legal and meet IRS conditions, which include:

• Any medical services from physicians, surgeons, dentists, and other medical professionals related to the diagnosis, cure, mitigation, treatment, or prevention of disease
• Any costs for medications prescribed by a medical professional
• Any costs for medical devices, equipment, and supplies prescribed by a medical professional, such as eyeglasses
• Expenses associated with transportation to and from medical care
• Long-term care services
• Insurance for medical care or long-term care

Expenses that are merely beneficial to general health, such as vitamins, aren't covered.  

The IRS offers a  free tool  that helps you figure out if you can deduct your medical expenses.

Medical-Related Transportation Costs

You can deduct the cost of transportation to and from a health care facility or treatment if the trip is primarily for medical care and is essential. The following expenses can be included in the cost of medical-related transportation:

• Bus, taxi, train, and plane fares 
• Ambulance service
• Transportation expenses of a parent who has to go with their child who needs medical care
• Transportation expenses of a nurse who travels with the patient and provides care because the patient can't travel alone
• Transportation expenses for regular visits to see a dependent who is mentally ill, as long as the visits are recommended as a part of treatment

You can deduct the miles using the standard mileage rate for medical purposes if you travel by car. For medical driving, It's 18 cents per mile in tax year 2022 You can add the cost of parking and road tolls to this rate.

You can deduct medical expenses paid for yourself, your spouse, and your dependents . You might also be able to deduct expenses for someone you don't actually claim as your dependent, but you could have done so except for any of the following circumstances:

• You didn’t claim your child as a dependent because of the rules for children of divorced or separated parents .
• You didn’t claim an individual as a dependent on your return because that person earned $4,300 or more in gross income as of 2021, or because they filed a joint return.
• You or your spouse (if married filing jointly) can't be claimed as a dependent on someone else's return.  

The Deduction and Your AGI Threshold

You can calculate the 7.5% rule by tallying up all your medical expenses for the year, then subtracting the amount equal to 7.5% of your AGI. For example, if your AGI is $65,000, your threshold would be $4,875, or 7.5% of $65,000. You can find your AGI on Form 1040 .

If you spent $10,000 on qualified medical expenses, then you could deduct $5,125—the balance over that $4,875 threshold.

You Must Itemize to Claim the Deduction

You must itemize your deductions to claim medical expenses. This means you must complete and file Schedule A with your tax return. It could be worth your while if you're eligible to claim several other itemized deductions as well, so they all add up to more than the year's standard deduction. The deduction amount for tax year 2022 ranges from $12,950 to $25,900, and $13,850-$27,700 in tax year 2023.

You can't claim the standard deduction and itemize, too—it's one or the other.

You'd pay taxes on more income than you have to if you don't claim the standard deduction and if you don't have itemized deductions that total more than the applicable standard deduction amount.

If you choose to itemize, you can deduct your medical expenses starting on Line 1 of Schedule A . Complete Lines 2 and 3 to calculate your threshold limitation on medical expenses. Lastly, Line 4 shows how much you can deduct.

Pre-Tax Expenses Aren't Deductible

Only medical expenses that aren’t reimbursed by your insurance can be included in the medical expense deduction. For example, say you have a prescription medication that costs $50, and your insurance company pays $20. You pay $30. With the medical expense deduction, you can only deduct the $30. 

Similarly, any medical expenses paid from a flexible spending account, a health savings account (HSA), or a health reimbursement arrangement aren't included in the itemized deduction for medical expenses. These accounts already provide a tax advantage, and you can't double dip.  

Special Rules for Some Health Insurance

You can deduct premiums for health, dental, and vision care insurance, but only if the premiums are paid with after-tax dollars. Those who have group insurance through their employers usually pay these premiums with pretax dollars. 

You can deduct Medicare Part A premiums, but only if you aren't covered under Social Security and are voluntarily enrolled in Medicare Part A. Medicare Part B and Part D premiums are deductible, too.

You can only deduct medical expenses in the year you paid them. In general, you can't deduct payments made for services that will take place in a future year.

How much medical expense is tax deductible?

You can deduct qualifying medical expenses that exceed 7.5% of your adjusted gross income. You must itemize your deductions to be able to claim medical expenses on your tax return.

How do you claim medical expenses on your taxes?

You can tally your medical expenses on Schedule A and then record your total on Form 1040 when you file your taxes .

IRS. “ Publication 502, Medical and Dental Expenses .” Click "What Are Medical Expenses" in table of contents.

IRS. “ IRS Issues Standard Mileage Rates for 2022 .”

IRS. " Publication 501, Dependents, Standard Deduction, and Filing Information ."

IRS. “ Publication 502, Medical and Dental Expenses .” Click "Whose Medical Expenses Can You Claim?" in table of contents.

IRS. " IRS Provides Tax Inflation Adjustments for Tax Year 2023 ."

IRS. " IRS Provides Tax Inflation Adjustments for Tax Year 2022 ."

IRS. " Schedule A: Itemized Deductions ."

IRS. “ Publication 502, Medical and Dental Expenses .” Click "How Do You Treat Reimbursements?" in table of contents.

IRS. “ Publication 502, Medical and Dental Expenses .” Click "Employer-Sponsored Health Care Plan" in table of contents.

IRS. “ Publication 502, Medical and Dental Expenses .” Click "What Expenses Can You Include This Year?" in table of contents.

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Can I deduct medical mileage and travel?

Yes, you can deduct costs associated with using your car or public transportation for medical visits and even to pick up prescriptions.

For car expenses, you can use either the standard mileage rate (TurboTax figures it for you) or actual expenses, such as gas.

You can add actual out-of-pocket expenses, such as parking fees and tolls, whether you use the standard mileage rate or actual expenses method.

Be sure to keep records of each trip, including the date, the mileage driven, who you saw, and the purpose. Keep receipts for each expense.

For more information, see Where do I enter my medical expenses?

Related Information:

• Can I deduct mileage?
• Can I deduct travel expenses?
• Can I deduct medical, dental, and vision expenses?
• Can employees deduct commuting expenses like gas, mileage, fares, and tolls?
• What kinds of medical expenses are deductible?

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Medical expense deduction: How to claim medical expenses on your taxes

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Are medical expenses tax-deductible?

Your medical expenses may be tax-deductible under certain circumstances. If the medical bills you pay out of pocket in a year exceed 7.5 percent of your adjusted gross income (AGI) , you may deduct only the amount of your medical expenses that exceed 7.5 percent of your AGI from your taxes.

You also must itemize your deductions to deduct your medical expenses. Most taxpayers no longer itemize because the 2017 Tax Cuts and Jobs Act greatly increased the standard deduction . Other criteria for eligibility include meeting the income threshold and the IRS standard of deductibility.

What is the medical expense deduction?

If you itemize your deductions each year using Schedule A, you might be able to deduct some of the medical (including dental) expenses you paid out of pocket that year. Deducting these expenses from your total earnings reduces some of your tax burden.

The IRS allows filers to deduct medical expenses that are more than 7.5 percent of their adjusted gross income. Let’s say your AGI for 2020 was $45,000. Multiply that by 0.075 and you get $3,375, which is the threshold for your medical expenses. If your unreimbursed, out-of-pocket medical bills totaled $6,000, that means that you can deduct $2,625.

Qualifying medical and dental bills for you, your spouse and your dependents — everyone listed on your tax return — count toward the deduction limit. Medical bills you paid for a deceased dependent, whether before or after the person died, also are deductible.

“Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or payments for treatments affecting any structure or function of the body,” according to the IRS .

What medical expenses are tax-deductible?

Here’s a list of the medical expenses that are tax-deductible.

• Travel expenses to and from medical treatments. For 2020 taxes, the medical travel rate is 17 cents per mile, down from 20 cents per mile in 2019.
• Insurance costs, including premiums, co-insurance and co-pays, from already-taxed income. This includes the cost of long-term care insurance, up to certain limits based on your age.
• Uninsured medical expenses, such as an extra pair of eyeglasses or set of contact lenses, false teeth, hearing aids and artificial limbs.
• Costs of alcohol- or drug-abuse treatments.
• Eye surgery, such as Lasik, when it is not just for cosmetic purposes.
• Medically necessary costs prescribed by a physician. For example, if your doctor recommended you put a humidifier in your home to help with breathing problems, the humidifier and additional electricity costs could be at least partially deductible.
• Some medical conference costs. You can count admission and transportation expenses to the conference if it concerns a chronic illness that afflicts you, your spouse or a dependent. Meals and lodging costs while at the seminar, however, are not deductible.
• Weight-loss programs for a specific disease diagnosed by a physician, such as obesity or hypertension.

Another way to get a tax break is with a medical flexible spending account, or FSA. An FSA lets you set aside before-tax money, up to a certain amount, with which to pay out-of-pocket medical expenses. FSA contribution limits are $2,750 for 2020 and 2021.

Two major benefits of the medical FSA:

• All medical expenses up to the limit receive the effective tax deduction.
• The FSA eliminates the requirement of itemizing deductions to receive tax benefits.

“Many employers offer plans that allow you to pay a portion of your medical expenses with pretax dollars,” says Valrie Chambers, associate professor of accounting at Stetson University in DeLand, Florida.

“This is a very good deal – almost a guaranteed 15 to 25 percent discount for most services. It helps to absorb the economic shock of an illness,” says Chambers, who strongly encourages workers with access to an FSA to sign up.

Other deductible medical expenses

If you have special needs, there are other costs you can write off, such as the cost of a wheelchair, crutches, equipment that enables a deaf person to use a telephone or devices that provide television closed-captioning. Don’t forget guide dogs for the blind or hearing-impaired, or the costs to retrofit your car with special hand controls or space to hold a wheelchair.

If you make renovations to your home for medical reasons, you can deduct the cost as a medical expense. Expenses related to making your home more accessible for a disabled resident also are deductible, but you likely won’t be able to write off the full costs.

Aging-in-place home remodels you can write off, include:

• Installing ramps.
• Widening doors and hallways, and lowering counters and cabinets.
• Adjusting electrical outlets and fixtures.
• Grading exterior landscape to ease access to the house.
• Adding a chairlift to get up and down stairs.

If the improvement increases the value of your property, that amount is subtracted from the project’s cost and the difference counts as a medical expense.

Here’s an example. Let’s say you spend $60,000 to install an elevator in your home because you have a heart problem and can’t walk flights of stairs anymore. Your home was worth $200,000; the elevator raised the value to $240,000. The cost of the elevator minus the increase in your home value is what you can deduct – in this case, $20,000.

Which medical bills are not tax-deductible?

Surgery that is strictly cosmetic, health club dues and weight-loss programs that aren’t medically necessary aren’t tax-deductible. Neither are hair transplant procedures or electrolysis.

For a complete list of tax-deductible and non-deductible medical expenses, check out IRS Publication 502 . You might find a few things there that can help get you over the deduction threshold.

How to claim the medical expense deduction

If you have enough expenses to exceed the standard deduction for your filing status, you can start itemizing expenses, including medical bills, to reduce your taxable income.

Itemized medical expenses and other itemized expenses are tallied on Schedule A of IRS Form 1040. Schedule A is separated into sections for different categories of deductible expenses. Once you have totaled the expenses for each category, add them up and put the grand total on your Form 1040.

Learn more:

• Tax brackets
• Tax credits vs. tax deductions
• Ways to lower your taxable income

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IRS Announces Standard Mileage Rates for 2022

58.5 cents/mile for business purposes starting Jan. 1

The Internal Revenue Service (IRS) just released standard mileage rates that taxpayers must use when filing 2022 income taxes in 2023 if they are claiming a mileage deduction for a vehicle they own or lease. These rates set IRS allowances for the deductible part of the cost of driving for business and for charitable, medical, and moving purposes. The rates are adjusted on an annual basis (except for charitable-organization driving, which is set by statute) and depend on whether the vehicle is used for business, medical, or charitable purposes.

Key Takeaways

• The IRS annually publishes three standard rates used to calculate deductions for mileage driven for business, medical/moving, and charitable purposes
• The rates for 2022 are 58.5 cents/mile for business; 18 cents/mile for medical/military moving expenses; and 14 cents/mile for charitable driving.
• Deductions for unreimbursed employee travel expenses and non-military moving expenses were eliminated by the TCJA.
• The charitable rate is set by statute and does not necessarily change each year.
• Additional rates and valuations for 2022 include the taxable value of an employer-provided vehicle used for personal purposes.

Under the Tax Cuts and Jobs Act (TCJA) , taxpayers can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. In addition, moving-expense deductions are only available to members of the Armed Forces on active duty moving under orders to a permanent change of station.

Standard Optional Mileage Rates for 2022

For 2022, the business mileage rate is 58.5 cents per mile; medical and moving expenses driving is 18 cents per mile; and charitable driving is 14 cents per mile, the same as last year. The mileage rates are considered optional because taxpayers can always calculate the actual cost of using their vehicle instead of based on mileage.

• The 2022 business use allowance of 58.5 cents per mile driven is up 2.5 cents from 2021;
• The medical and moving expense rate of 18 cents per mile driven in 2022 has been raised 2 cents from 2021; and
• The 2022 rate of 14 cents per mile driven in service of charitable organizations, is set by statute and remains unchanged from last year.

Special Rules for Claiming Standard Mileage

When using the standard mileage rate for tax purposes, you must follow rules established by the IRS in order to claim a deduction:

• You can only claim standard mileage for a vehicle you own or lease.
• You must log the mileage for each deductible use; total mileage for the year; and the date, destination, and purpose of each trip.
• In order to use the standard mileage rate, taxpayers must use it the first year their vehicle is available for business use.
• In later years you can choose between the standard mileage rate and actual expenses.
• Leased vehicles must use the standard mileage rate for the entire lease period including lease renewals if the standard mileage rate is chosen in the first year.

How Mileage Rates and Vehicle Valuation Are Determined

The IRS uses an independent contractor to conduct an annual study of the fixed and variable costs of operating an automobile to set the standard mileage rates for business, medical, and military moving deductions. As previously noted, the standard mileage rate for charitable use is set by statute.

If you are provided a vehicle by your employer that you also use for personal use, regulations determine the amount that must be included in your income and wages. This is typically based on the vehicle's Fair Market Value (FMV). One of two special valuation rules, the fleet-average valuation rule or the vehicle cents-per-mile valuation rule, may also be used. These valuations are subject to limitations and, for 2022, may not exceed $56,100.

Additional IRS Vehicle Rates and Valuations for 2022

Included in the publication of standard mileage rates for 2022 are several additional updated rates and costs for the tax year 2022.

2022 Basis Reduction Amount

For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 25 cents per mile for 2018, 26 cents per mile for 2019, 27 cents per mile for 2020, 26 cents per mile for 2021, and 26 cents per mile for 2022.

Maximum Standard Automobile Cost for 2022

For purposes of computing the allowance under a fixed and variable rate (FAVR) plan, the standard automobile cost may not exceed $56,100 for automobiles (including trucks and vans).

Maximum Value of Vehicles First Made Available in 2022

For purposes of the fleet-average valuation rule and the vehicle cents-per-mile valuation rule, the maximum FMV of automobiles (including trucks and vans) first made available to employees in calendar year 2022 is $56,100.

Internal Revenue Service. " IRS issues standard mileage rates for 2022 ."

Internal Revenue Service. " Pub. 463: Travel, Gift, and Car Expenses ."

Internal Revenue Service. " Notice 2022-03: 2022 Standard Mileage Rates ."

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How do you claim a medical expense deduction on your taxes?

You can snag a tax break for medical expenses -- but there are rules you'll need to follow..

While it doesn’t influence our opinions of products, we may receive compensation from partners whose offers appear here. We’re on your side, always. See our full advertiser disclosure .

Medical bills are a major expense a lot of people have to bear. In fact, a big contributor to U.S. credit card debt is none other than medical bills.

If you spent a lot of money on medical expenses last year, you may be wondering whether it will serve as a tax break for you. The answer is that it depends on how you do your taxes and how much your bills amounted to relative to your income.

Tax filers can go one of two routes when filing their returns : They can take the standard deduction, or they can itemize their personal deductions to see if that number is higher. In order to claim a medical expense deduction on your taxes, you must be itemizing on your return.

How much did you spend?

The rule for claiming a medical expense deduction is that you can only write off healthcare costs that exceed 7.5% of your adjusted gross income. And that's where things get a little complicated.

Learn more: Best current CD rates

Let's say your adjusted gross income for 2022 was $70,000, and you spent $5,000 on medical bills last year. Clearly, that means your healthcare costs ate up a sizable chunk of your income. But if your adjusted gross income last year was $70,000, $5,000 is only about 7.1% of that. So in this situation, you get no deduction.

Now, let's say that instead of spending $5,000 on medical bills in 2022, you spent $8,000. That's over 11% of your income, so you should be good to claim a deduction if you're itemizing on your return.

However, you don't get to claim an $8,000 deduction. You can only claim amounts beyond 7.5% of your income.

Since 7.5% of $70,000 is $5,250, it means your first $5,250 in medical expenses cannot be deducted. You can only claim expenses above that threshold. So in this example, with $8,000 in medical spending, you're looking at a deduction worth $2,750.

What expenses can you claim?

There tends to be confusion about the medical expense deduction because you might assume it only applies to doctor visits. Not so. You can claim expenses that extend to dental care if you had a lot of bills to cover out of pocket. You may also, in some cases, be eligible to claim transportation expenses as part of the medical expense deduction.

Say you needed treatment at a facility 40 miles away from your house multiple times last year. You can generally claim expenses like mileage, tolls, and applicable parking fees as part of your total medical expense deduction.

Know the rules

If you spent a lot of money on healthcare bills last year, then it absolutely pays to see if you're entitled to claim a medical expense deduction. But claiming an incorrect deduction on your tax return could lead to an IRS audit, and that's probably not something you want. Make sure you understand the rules fully so you don't claim the wrong amount and subject yourself to further scrutiny from the IRS.

Tax deadlines : Don't wait till the last minute to pay your taxes 

Child tax credit: How much is it? What you need to know

More of your 2022 tax season questions answered

• Tax season 2023: Here are key deadlines to keep in mind
• 1099, W-4, W-2, W-9, 1040: What are these forms used for when filing your taxes?
• 2023 tax season guide for new parents
• IRS may owe you from 2020 taxes. Here's what you need to do to find out. 
• Do you have to report crypto on taxes? Yes. Here's what you should know 
• 1098-E form: What you need to know about the student loan interest statement
• Who has to file a tax return:  It's not necessary for everyone. Here are the rules.

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Medical Expenses 2023

From: Canada Revenue Agency

RC4065(E) 23

The CRA's publications and personalized correspondence are available in braille, large print, etext, or MP3. For more information, go to About multiple formats or call 1-800-959-8281 .

Find out if this guide is for you

This guide is for persons with medical expenses and their supporting family members. The guide gives information on eligible medical expenses you can claim on your tax return.

This guide uses plain language to explain the most common tax situations. The guide is for information only and does not replace the law.

General information

The medical expense tax credit is a non-refundable tax credit that you can use to reduce the tax that you paid or may have to pay. If you paid for healthcare expenses, you may be able to claim them as eligible medical expenses on your tax return. These expenses include a wide range of products, procedures and services, such as:

• medical supplies
• dental care
• travel expenses

Generally, you can claim all amounts paid, even if they were not paid in Canada.

You can only claim the part of an eligible expense for which you have not been or will not be reimbursed.

How to claim medical expenses

You can claim medical expenses on line 33099 or 33199 of your tax return under Step 5 – Federal tax.

Line 33099 – You can claim the total eligible medical expenses you or your spouse or common-law partner paid for any of the following persons:

• your spouse or common-law partner
• your or your spouse’s or common-law partner’s children who were under 18 years of age at the end of the tax year

Line 33199 – You can claim the part of eligible medical expenses you or your spouse or common-law partner paid for any of the following persons who depended on you for support:

• your or your spouse’s or common-law partner’s children who were 18 years of age or older at the end of the tax year, or grandchildren
• your or your spouse’s or common-law partner’s parents, grandparents, brothers, sisters, uncles, aunts, nephews, or nieces who were residents of Canada at any time in the year

You have to calculate, for each dependant, the medical expenses that you are claiming on line 33199.

Amounts you can claim

Line 33099 – You can claim the total of the eligible expenses minus the lesser of the following amounts:

• 3% of your net income ( line 23600 of your tax return)

Line 33199 – You can claim the total of the eligible expenses minus the lesser of the following amounts:

• 3% of your dependant's net income (line 23600 of their tax return)

The maximum provincial or territorial amount you can claim for medical expenses may differ depending on where you live. For more information, see the information guide for your province or territory of residence in your income tax package. If you live in Quebec, visit Revenu Québec .

Period for which you can claim these expenses

You can claim eligible medical expenses paid in any 12-month period ending in 2023 and not claimed by you or anyone else in 2022. For a person who died in 2023 , a claim can be made for expenses paid in any 24-month period that includes the date of death if the expenses were not claimed for any other year.

Richard and Pauline have two children, Jen and Rob. They have reviewed their medical expenses and decided that the 12-month period ending in 2023  they will use to calculate their claim is July 1, 2022  to June 30, 2023 . They had the following expenses:

Since Jen is under 18, Richard and Pauline can combine her medical expenses with theirs, for a total of $4,300. Either Richard or Pauline can claim this amount on line 33099 of their tax return (Step 5 – Federal tax). Since Rob is over 18 , his medical expenses should be claimed on line 33199.

Pauline’s net income (on line 23600 of her return) is $32,000. She calculates 3% of that amount, which is $960. Because the result is less than $2,635, she subtracts $960 from $4,300. The difference is $3,340, which is the amount she could claim on her tax return.

Richard’s net income is $48,000. He calculates 3% of that amount, which is $1,440. Because the result is less than $2,635, he subtracts $1,440 from $4,300. The difference is $2,860, which is the amount he could claim on his tax return. In this case, it is better for Pauline to claim all the expenses for Richard, herself, and their daughter Jen on line 33099.

To decide who should claim the medical expenses for Rob on line 33199 , Richard and Pauline will have to make the same calculation using Rob’s net income.

Credits or deductions related to medical expenses

Refundable medical expense supplement.

The refundable medical expense supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses. You may be able to claim this credit if all of the following conditions apply:

• You made a claim for medical expenses on line 33200 of your tax return (Step 5 – Federal tax) or for the disability supports deduction on line 21500 of your tax return.
• You were resident in Canada throughout 2023.
• You were 18 years of age or older at the end of 2023.

You must also meet the criteria related to income.

For more information, go to  line 45200 – Refundable medical expense supplement .

Disability supports deduction

The person with the impairment in physical or mental functions may be able to claim some medical expenses as a disability supports deduction. They can claim these expenses on either line 21500 or line 33099 , or split the claim between these two lines, as long as the total of the amounts claimed is not more than the expenses paid.

For the eligibility criteria, the list of the eligible expenses, or more information, see Guide RC4064, Disability-Related Information .

Certain medical expenses require a certification

In this guide, the CRA identifies the medical expenses that have to be certified by a medical practitioner. Medical practitioners include a wide range of health professionals, such as doctors, pharmacists, and nurses. To view the list of practitioners who can certify medical expenses, go to Authorized medical practitioners for the purposes of the medical expense tax credit .

Common medical expenses you can claim

You can claim the following items medical expenses on line 33099 or use them to calculate an amount on line 33199 . Any certification needed is specified. This list is not complete.

For more information, see Income Tax Folio S1-F1-C1, Medical Expense Tax Credit .

Attendant care and care in a facility

Attendant care is care given by an attendant who does personal tasks which a person cannot do for themselves. Attendant care can be received in certain types of facilities.

You can claim amounts paid to an attendant only if the attendant was not your spouse or common-law partner and was 18 years of age or older when the amounts were paid.

If an individual issues a receipt for attendant care services, the receipt must include their social insurance number.

Who can claim these expenses

You can claim as medical expenses the amounts you or your spouse or common-law partner paid for attendant care or care in a facility. The expenses must have been paid for the care of any of the following persons:

• a dependant

A dependant is someone who depended on you for support and is any of the following persons:

• your or your spouse’s or common-law partner’s child or grandchild
• your or your spouse’s or common-law partner’s parent, grandparent, brother, sister, uncle, aunt, nephew, or niece who lived in Canada at any time in the year

Amounts you can claim as medical expenses

Full-time care or specialized care.

Generally, you can claim the entire amount you paid for care at any of the following facilities:

• nursing homes (full-time care)
• schools, institutions, or other places (providing care or care and training)

The care is condifered to be full-time care when a person needs constant care and attendance.

Other places could include an outpatient clinic, such as a detoxification clinic; however, they do not include a recreational facility, such as a residential summer camp, even if it caters to persons with disabilities.

Generally, you cannot claim the entire amount you paid for a retirement home or a home for seniors. However, you can claim salaries and wages for care in such facilities if the care recipient qualifies for the disability tax credit (see Salaries and wages ).

What is meant by nursing home  – A nursing home is generally considered to be a facility that gives full-time care, including 24-hour nursing care, to individuals who are unable to care for themselves. Any facility could be considered a nursing home if it has the same features and characteristics as a nursing home.

All regular fees paid for full-time care in a nursing home or for specialized care or training in an institution are eligible as medical expenses, including fees for all of the following:

• accommodation
• nursing care
• administration fees
• maintenance fees
• social programming and activities fees

However, extra personal expenses (such as hairdresser fees) are not eligible.

Salaries and wages

You may be able to claim the fees for salaries and wages paid for attendant care services or care or supervision in any of the following facilities:

• self-contained domestic establishments (such as your private home)
• retirement homes, homes for seniors, or other institutions that typically provide part-time attendant care
• group homes in Canada
• nursing homes (special rules apply to this type of facility; see the chart )

Eligibility for the disability tax credit may be a requirement to claim fees for salaries and wages as medical expenses. See the reference to Form T2201, Disability Tax Credit Certificate, in the chart .

Expenses you can claim – You may be able to claim as medical expenses the salaries and wages paid to all employees who do the following tasks or services:

• food preparation
• housekeeping services for a resident’s personal living space
• laundry services for a resident’s personal items
• health care (registered nurse, practical nurse, certified health care aide, personal support worker)
• activities (social programmer)
• salon services (hairdresser, manicurist, pedicurist) if included in the monthly fee
• transportation (driver)
• security for a secured unit

If you are receiving attendant care services in your home, you can only claim for the period when you are at home and need care or help. For an expense to be eligible as a medical expense, you must either:

• be eligible for the disability tax credit
• have a written certification from a medical practitioner that states the services are necessary

Expenses you cannot claim – You cannot claim the cost of any of the following:

• rent (except the part of rent for services that help a person with daily tasks, such as laundry and housekeeping)
• cleaning supplies
• other operating costs (such as the maintenance of common areas and outside grounds)
• salaries and wages paid to employees such as administrators, receptionists, groundskeepers, janitors (for common areas), and maintenance staff

Sample statement for attendant care expenses

To claim attendant care expenses paid to a facility such as a retirement home, you have to send the CRA a detailed breakdown from the facility.

The breakdown must clearly show the amounts paid for staff salaries that apply to the tasks and services listed under Expenses you can claim . The breakdown should also take into account any subsidies that reduce the attendant care expenses (unless the subsidy is included in income and is not deductible from income).

The following sample statements show the detailed information the CRA needs.

Based on the above statement, Stephen’s eligible attendant care expenses are $8,893.

Based on the above statement, Jamie’s eligible attendant care expenses are $5,877. The amount of eligible expenses that Jamie can claim was reduced because of the subsidies received.

Special rules when claiming the disability amount

There are special rules when claiming the disability amount and attendant care as medical expenses. For information on claiming attendant care and the disability amount, see the chart below.

Type of certification needed when claiming both attendant care as medical expenses and the disability amount

The following chart shows the certification you need to claim attendant care as a medical expenses on line 33099 or 33199 of your tax return (Step 5 – Federal tax) and if you can also claim the disability amount on line 31600 or line 31800 .

In all cases , for you to claim the disability amount, the CRA has to approve Form T2201, Disability Tax Credit Certificate. Part A of Form T2201 can be completed using the digital form, by phone, or by paper form. For more information on Form T2201, the disability tax credit, and the disability amount, go to Disability tax credit .

Calculate your net federal tax by completing Step 5 of your tax return to find out what is more beneficial for you. You can also see the examples below.

If you claim the fees paid to a nursing home for full-time care as a medical expense on line 33099 or 33199 of your tax return (Step 5 – Federal tax), no one (including yourself) can claim the disability amount for the same person.

You can claim the disability amount together with the portion of the nursing home fees that relate only to salaries and wages for attendant care (up to the limit indicated in the chart above). However, you must provide a breakdown of the amounts charged by the nursing home showing the portion of payments that relate to attendant care.

Choosing what is more beneficial

The following examples show two ways to calculate your net federal tax using Step 5 – Federal tax of your tax return, in order to determine what is more beneficial for you.

Dali is 38 years old and lives in their own home. Dali's only income is a disability pension of $32,000. Dali's doctor has certified in writing that they are dependent on others for their own personal need because of a physical impairment. The Canada Revenue Agency (CRA) has approved Form T2201 for Dali. Dali pays their 43-year-old neighbour, Marge, $14,000 each year to look after them full-time. Dali can claim the amounts they pay Marge for attendant care as a medical expense.

Dali has a choice to make. See the examples of Dali's tax return for a breakdown of their claims on their tax return using both options.

Dali's first option is to claim $10,000 of their attendant care expenses as a medical expense on line 33099 and claim the disability amount of $9,428 on line 31600 . Under this option, Dali would have no federal tax to pay.

Dali's second option is to claim all $14,000 of their attendant care expenses as a medical expense, but then they would not be able to claim the disability amount. Dali's federal tax would be $294.00.

For Dali, the first option is better since it reduces their basic federal tax to zero.

Judy is a 57-year-old who earned $40,000 of pension income last year. She was seriously injured in a car accident a few years ago and now needs full-time attendant care. The CRA has approved Form T2201 for her. Last year, Judy paid $32,000 to a retirement home. Of that amount, $21,000 was her share of the salaries and wages paid to staff for full-time attendant care.

Judy has a choice to make. See the examples of Judy’s tax return for a breakdown of her claims on her tax return using both options.

Her first option is to claim $10,000 of her share of the salaries and wages as medical expenses on line 33099 and claim the disability amount of $9,428 on line 31600. Under this option, she would have to pay $715.80 in federal tax.

Her second option is to claim all of her share of salaries and wages ($21,000) as a medical expense, but then she would not be allowed to claim the disability amount. Judy's federal tax would be $480.00.

For Judy, the second option is better since it reduces her basic federal tax to $480.00.

Care, treatment, and training

This section identifies most types of care, treatment and training you can claim as medical expenses.

Bone marrow transplant – reasonable amounts paid to find a compatible donor, to arrange the transplant including legal fees and insurance premiums, and reasonable travel, board and lodging expenses for the patient, the donor, and their respective attendants.

Cancer treatment in or outside Canada, given by a medical practitioner or a public or licensed private hospital.

Cosmetic surgery – generally, expenses solely for cosmetic procedures are not eligible.

An expense for a cosmetic procedure qulifies as an eligible medical expense if it is necessary for medical or reconstructive purposes, such as surgery to address a deformity related to a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. For more information, see Common medical expenses you cannot claim .

Egg and sperm freezing and storage – to preserve one's ova (eggs) or sperm for the purpose of conceiving a child in the future.

Fertility-related procedures – amounts paid to a medical practitioner or a public or licensed private hospital to conceive a child. Under proposed changes, certain expenses paid in respect of a surrogate mother or a donor (for example, a donor or sperm, ova, or embryos) may be eligible as of 2022 if they are incured in Canada and are of a type that would be otherwise permitted as medical expenses of the individual. See also In vitro fertility program .

Group home – see Attendant care and care in a facility .

In vitro fertility program – the amount paid to a medical practitioner or a public or licensed private hospital. Under proposed changes, fees and other amounts paid to a fertility clinic or donor bank in Canada to obtain sperm or ova (eggs) may be eligible as of 2022. The amounts must be paid to enable the conception of a child by the individual, the individual's spouse or common-law partner, or a surrogate mother on behalf of the individuals. See also Fertility-related procedures .

Laser eye surgery – the amount paid to a medical practitioner or a public or licensed private hospital.

Nursing home – see Attendant care and care in a facility .

Organ transplant – reasonable amounts paid to find a compatible donor, to arrange the transplant including legal fees and insurance premiums, and reasonable travel, board and lodging expenses for the patient, the donor, and their respective attendants.

Personalized therapy plan – the salaries and wages paid for designing a personalized therapy plan are eligible medical expenses if certain conditions are met.

The plan has to be designed for a person who is eligible for the disability tax credit (DTC) and paid to someone who is in the business of providing such services to unrelated persons.

The therapy has to be prescribed and supervised by one of the following practitioners:

• a psychologist, a medical doctor, or a nurse practitioner (for expenses incurred after September 7, 2017) for a mental impairment
• an occupational therapist, a medical doctor, or a nurse practitioner (for expenses incurred after September 7, 2017) for a physical impairment

The plan has to meet one of the following conditions:

• be needed to get public funding for specialized therapy
• be prescribed by a psychologist, a medical doctor, or a nurse practitioner (for expenses incurred after September 7, 2017 ) for a mental impairment
• be prescribed by an occupational therapist medical doctor, or a nurse practitioner (for expenses incurred after September 7, 2017) for a physical impairment

For more information about the DTC, see Guide RC4064, Disability-Related Information .

Pre-natal and post-natal treatments paid to a medical practitioner or a public or licensed private hospital.

Rehabilitative therapy including lip reading and sign language training to adjust to a person’s loss of hearing or speech loss.

Respite care expenses – see Attendant care and care in a facility .

School for persons with a mental or physical impairment – an appropriately qualified person, such as a medical practitioner or the principal or head of the school, must certify in writing that the equipment, facilities, or staff specially provided by that school are needed because of the person’s physical or mental impairment.

Therapy – the salary and wages paid for the therapy given to a person who is eligible for the disability tax credit (DTC). The person giving the therapy must not be your spouse or common-law partner and must be 18 years of age or older when the amounts are paid.

• an occupational therapist, a medical doctor, or a nurse practitioner (for expenses incurred after September 7, 2017) for a physical impairment

Training – reasonable amounts paid for you or a relative to learn to care for a relative with a mental or physical impairment who lives with you or depends on you for support. The amount has to be paid to someone who is not your spouse or common-law partner and who was 18 years of age or older when the amounts were paid.

Treatment centre for a person addicted to drugs, alcohol, or gambling. A medical practitioner must certify in writing that the person needs the specialized equipment, facilities, or staff.

Whirlpool bath treatments – the amount paid to a medical practitioner for these treatments. A hot tub that you install in your home, even if prescribed by a medical practitioner, is not eligible.

Construction and renovation

This section identifies the fees related to the changes made to a home that you can claim as medical expenses.

Driveway access – reasonable amounts paid to alter the driveway of the main place of residence of a person who has a severe and prolonged mobility impairment, to ease access to a bus.

Furnace – the amount paid for an electric or sealed combustion furnace bought to replace a furnace that is neither of these, where the replacement is necessary because of a person’s severe chronic respiratory ailment or immune system disorder – prescription needed.

Renovation or construction expenses – the amounts paid for changes that give a person access to (or greater mobility or functioning within) their home because they have a severe and prolonged mobility impairment or lack normal physical development.

Costs for renovating or altering an existing home or the incremental costs in building the person’s main place of residence may be incurred. These amounts paid minus any related rebates, such as the goods and services tax/harmonized sales tax (GST/HST), can be claimed.

Renovation or construction expenses have to be reasonable and meet both of the following conditions:

• They would not normally be expected to increase the value of the home.
• They would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment.

Make sure you get a breakdown of the costs. Costs could include expenses such as:

• buying and installing outdoor or indoor ramps if the person cannot use stairs
• enlarging halls and doorways to give the person access to the various rooms of their home
• lowering kitchen or bathroom cabinets so the person can use them

While these costs to renovate or alter a home to accommodate the use of a wheelchair may qualify as medical expenses under the conditions described above, these types of expenses related to other types of impairment may also qualify. In all cases, you must keep receipts and any other related documents to support your claim. Also, you must be able to show that the person’s particular circumstances and the expenses meet all of the conditions.

If the renovation expenses qualify for the home accessibility tax credit (HATC), you could claim both the HATC and the medical expenses tax credit for these expenses. For more information about the HATC, see Guide RC4064, Disability-Related Information .

Devices, equipment, and supplies

This section identifies health-related devices, equipment, and supplies you can claim as medical expenses.

Acoustic coupler – prescription required.

Air conditioner – $1,000 or 50% of the amount paid for the air conditioner, whichever is less , for a person with a severe chronic ailment, disease, or disorder – prescription needed.

Air filter, cleaner, or purifier used by a person to cope with or overcome a severe chronic respiratory ailment, or a severe chronic immune system disorder – prescription needed.

Altered auditory feedback devices for treating a speech disorder – prescription needed.

Artificial eye or limb

Assisted breathing devices that give air to the lungs under pressure, such as:

• a continuous positive airway pressure (CPAP) machine – prescription needed
• a mechanical ventilator

Audible signal devices including large bells, loud ringing bells, single stroke bells, vibrating bells, horns, and visible signals – prescription needed.

Baby breathing monitor – designed to be attached to an infant to sound an alarm if the infant stops breathing. A medical practitioner must certify in writing that the infant is at risk of sudden infant death syndrome – prescription needed.

Bathroom aids to help a person get in or out of a bathtub or shower or to get on or off a toilet – prescription needed.

Bliss symbol boards or similar devices used by a person who has a speech impairment to help the person communicate by choosing the symbols or spelling out words – prescription needed.

Blood coagulation monitors – the amount paid, including disposable peripherals such as pricking devices, lancets, and test strips, for a person who needs anti-coagulation therapy – prescription needed.

Bone conduction receiver

Braces for a limb including custom-made woven or elasticized stockings, walking casts, and boots or shoes that have braces built into them to allow a person to walk.

Braille note-taker devices used to allow a person who is blind to take notes (that can be read back to them, printed, or displayed in braille) with the help of a keyboard – prescription needed.

Braille printers, synthetic speech systems, large print-on-screen devices , and other devices designed only to help a person who is blind to use a computer – prescription needed.

Breast prosthesis because of a mastectomy – prescription needed.

Catheters, catheter trays, tubing , or other products needed for incontinence caused by illness, injury, or affliction.

Chair – power-operated guided chair to be used in a stairway, including installation – prescription needed.

Cochlear implant

Computer peripherals designed only to help a person who is blind to use a computer – prescription needed.

Dentures and dental implants

Devices or software designed to allow a person who is blind or has a severe learning disability to read print – prescription needed.

Diapers or disposable briefs for a person who is incontinent because of an illness, injury or affliction.

Elastic support hose designed only to relieve swelling caused by chronic lymphedema – prescription needed.

Electronic bone healing device – prescription needed.

Electronic speech synthesizers that allow a person who is unable to speak to communicate using a portable keyboard – prescription needed.

Electrotherapy devices for the treatment of a medical condition or a severe mobility impairment. These can include devices for transcutaneous electrical nerve stimulation, electrical muscle stimulation, and iontophoresis – prescription needed.

Environmental control system (computerized or electronic) including the basic computer system used by a person with a severe and prolonged mobility impairment – prescription needed.

Extremity pump for a person diagnosed with chronic lymphedema – prescription needed.

Hearing aids or personal assistive listening devices including repairs and batteries.

Heart monitoring devices including repairs and batteries – prescription needed.

Hospital bed including attachments – prescription needed.

Ileostomy and colostomy pads including pouches and adhesives.

Infusion pump including disposable peripherals used in treating diabetes, or a device designed to allow a person with diabetes to measure their blood sugar levels – prescription needed.

Injection pens designed to be used to give an injection, such as an insulin pen – prescription needed.

Kidney machine (dialysis) – the cost of the machine and related expenses, such as:

• repairs, maintenance, and supplies
• additions, renovations, or alterations to a home (the hospital official who installed the machine must certify in writing that they were necessary for installation)
• the part of the operating costs of the home that relate to the machine (excluding mortgage interest and capital cost allowance)
• a telephone extension in the dialysis room and all long distance calls to a hospital for advice or to obtain repairs
• necessary and unavoidable costs to transport supplies

Large print-on-screen devices designed to help a person who is blind to use a computer – prescription needed.

Laryngeal speaking aids

Lift or transportation equipment (power-operated) designed only to be used by a person with a disability to help them access different areas of a building, enter or leave a vehicle, or place a wheelchair on or in a vehicle – prescription needed.

Needles and syringes – prescription needed.

Optical scanners or similar devices designed to allow a person who is blind to read print– prescription needed.

Orthopaedic shoes, boots, and inserts – prescription needed.

Osteogenesis stimulator (inductive coupling) for treating non-union of fractures or aiding in bone fusion – prescription needed.

Oxygen and oxygen tent or other equipment necessary to administer oxygen – prescription needed.

Oxygen concentrator – amounts paid to buy, use and maintain an oxygen concentrator including electricity.

Pacemakers – prescription needed.

Page turner devices to help a person turn the pages of a book or other bound document when they have a severe and prolonged impairment that markedly restricts the person’s ability to use their arms or hands – prescription needed.

Phototherapy equipment for treating psoriasis or other skin disorders. You can claim the amount paid to buy, use, and maintain this equipment.

Pressure pulse therapy devices for treating a balance disorder – prescription needed.

Real-time captioning used by a person with a speech or hearing impairment and paid to someone in the business of providing these services.

Scooter – the amount paid for a scooter that is used instead of a wheelchair.

Spinal brace

Standing devices for standing therapy in the treatment of a severe mobility impairment – prescription needed.

Talking textbooks related to enrolment at a secondary school in Canada or a designated educational institution for a person who has a perceptual disability. A medical practitioner must certify in writing that the expense is necessary – prescription needed.

Teletypewriters or similar devices that allow a person who is deaf or unable to speak to make and receive phone calls – prescription needed.

Television closed caption decoders for a person who is deaf – prescription needed.

Truss for hernia

Van – 20% of the amount paid for a van that has been previously adapted, or is adapted within 6 months after the van was bought (minus the cost of adapting the van), to transport a person who needs to use a wheelchair, to a limit of $5,000 (for residents of Ontario, the provincial limit is $8,204).

Vehicle device designed only to allow a person with a mobility impairment to drive the vehicle – prescription needed.

Vision devices – including eyeglasses, contact lenses and prescription swimming goggles to correct eyesight – prescription needed.

Visual or vibratory signalling device used by a person with a hearing impairment – prescription needed.

Voice recognition software used by a person who has an impairment in physical functions. A medical practitioner must certify in writing that the software is necessary.

Volume control feature (additional) used by a person who has a hearing impairment – prescription needed.

Walking aids – the amount paid for devices designed only to help a person who has a mobility impairment – prescription needed.

Water filter, cleaner, or purifier used by a person to cope with or overcome a severe chronic respiratory ailment, or a severe chronic immune system disorder – prescription needed.

Wheelchairs and wheelchair carriers

Wigs – the amount paid for a person who has suffered abnormal hair loss because of a disease, accident, or medical treatment – prescription needed.

Gluten-free food products

Persons with celiac disease can claim the incremental costs associated with buying gluten-free food products as a medical expense.

Incremental cost of gluten-free products

The incremental cost of buying gluten-free food products is the cost of gluten-free product minus the cost of similar products with gluten.

Eligible food products

Generally, the food products are limited to those produced and marketed specifically for gluten-free diets, such as gluten-free bread.

Other products can also be eligible if they are used by the person with celiac disease to make gluten-free products for their own use. This includes, but is not limited to, rice flour and gluten-free spices.

If several people eat the product, only the costs related to the part of the product that is eaten by the person with celiac disease may be claimed as a medical expense.

Documents you need to keep

Do not send your supporting documents. Keep them in case the CRA asks to see them later. You will need to keep all of the following documents:

• a letter from a medical practitioner that certifies that the person has celiac disease and needs a gluten-free diet
• receipts for each gluten-free food product that is claimed
• a summary of each food product that was bought during the 12-month period for which the expenses are being claimed

Prescribed drugs, medications, and other substances

This section identifies prescribed drugs, medications, and other substances you can claim as medical expenses.

Drugs and medical devices bought under Health Canada’s Special Access Program – the amounts paid for drugs and medical devices that have not been approved for use in Canada, if they were purchased under this program. For more information, visit Health Canada .

Insulin or substitutes – prescription needed.

Liver extract injections for a person with pernicious anaemia – prescription needed.

Medical cannabis (marihuana) – the amounts paid for cannabis, cannabis oil, cannabis plant seeds, or cannabis products purchased for medical purposes from a holder of a licence for sale (as defined in subsection 264(1) of the Cannabis Regulations ). The patient must be a holder of a medical document (as defined in subsection 264(1) of the Cannabis Regulations). The Cannabis Regulations require that the patient be registered as a client of the holder of a licence for sale and require the patient to make their purchases from the holder they are registered with.

Where a patient has a registration certificate that allows them to legally produce a limited amount of cannabis for their own medical purposes, the cost of growing and producing cannabis for medical purposes (other than the cost of cannabis plant seeds and cannabis), such as pots, soil, nutrients, and lights, is not an eligible medical expense.

Prescription drugs and medications that can lawfully be obtained for use by the person only if prescribed by a medical practitioner. Also, the drugs or medications must be recorded by a pharmacist. You cannot claim over-the-counter medications, vitamins, or supplements, even if prescribed by a medical practitioner (except vitamin B12 ).

Vaccines – prescription needed.

Vitamin B12  therapy for a person with pernicious anaemia (either by injections, pills, or other methods) – prescription needed.

Service animals

The cost of a specially trained animal to assist in coping with an impairment for a person who is in any of the following situations. The person:

• is profoundly deaf
• has a severe and prolonged physical impairment that markedly restricts the use of their arms or legs
• is severely affected by autism or epilepsy
• has severe diabetes (for expenses incurred after 2013)
• has a severe mental impairment (for expenses incurred after 2017). The animal must be specially trained to perform specific tasks that assist the person in coping with the impairment. An animal that only provides emotional support is not considered to be specially trained for a specific task

In addition to the cost of the animal, the care and maintenance (including food and veterinarian care) are eligible expenses.

Reasonable travel expenses for the person to go to a school, institution, or other place that trains them in handling such an animal (including reasonable board and lodging for full-time attendance at the school) are eligible expenses. The training of such animals has to be one of the main purposes of the person or organization that provides the animal.

Services and fees

This section identifies the services and fees you can claim as medical expenses.

Ambulance service to or from a public or licensed private hospital.

Certificates – the amount paid to a medical practitioner for filling out and providing more information for Form T2201 and other certificates.

Deaf-blind intervening services used by a person who is blind and profoundly deaf when paid to someone in the business of providing these services.

Dental services – paid to a medical practitioner or a dentist. Expenses for purely cosmetic procedures are not eligible. For more information, see Common medical expenses you cannot claim .

Electrolysis – only amounts paid to a qualified medical practitioner. Expenses for purely cosmetic procedures are not eligible. For more information, see Common medical expenses you cannot claim .

Hospital services – public or private, that are licensed as hospitals by the province, territory, or jurisdiction they are located in.

Laboratory procedures or services including necessary interpretations – prescription needed.

COVID-19 tests, such as those for travel, would still need a prescription, even if they are mandatory.

Medical services by medical practitioners – to verify if a specific profession is recognized by a province or territory for the purposes of claiming medical expenses, go to Authorized medical practitioners for the purposes of the medical expense tax credit .

Medical services outside of Canada – if you travel outside Canada to get medical services, you can claim the amounts you paid to a medical practitioner and a public or licensed private hospital. A "licensed private hospital" is a hospital licensed by the jurisdiction that it operates in.

Moving expenses – reasonable moving expenses (that have not been claimed as moving expenses on anyone’s tax return) to move a person who has a severe and prolonged mobility impairment, or who lacks normal physical development, to housing that is more accessible to the person or in which the person is more mobile or functional, to a limit of $2,000 (for residents of Ontario, the provincial limit is $3,282).

Note-taking services used by a person with an impairment in physical or mental functions and paid to someone in the business of providing these services. A medical practitioner must certify in writing that these services are needed.

Nurse – the amount paid for services of an authorized nurse.

Orthodontic work including braces paid to a medical practitioner or a dentist. Expenses for purely cosmetic procedures are not eligible. For more information, see Common medical expenses you cannot claim .

Premiums paid to private health services plans including medical, dental, and hospitalization plans. They can be claimed as a medical expense, as long as 90% or more of the premiums paid under the plan are for eligible medical expenses.

Reading services used by a person who is blind or has a severe learning disability and paid to someone in the business of providing these services. A medical practitioner must certify in writing that these services are needed.

Sign language interpretation services used by a person with a speech or hearing impairment and paid to someone in the business of providing these services.

Tests – the cost of medical tests such as electrocardiographs, electrocardiograms, metabolism tests, radiological services or procedures, spinal fluid tests, stool examinations, sugar content tests, urine analysis, and x-ray services. Also, you can claim the cost of any related interpretation or diagnosis – prescription needed.

Tutoring services that are additional to the primary education of a person with a learning disability or an impairment in mental functions, and paid to a person in the business of providing these services to individuals who are not related to the person. A medical practitioner must certify in writing that these services are needed.

Travel expenses

This section explains which travel expenses you can claim as medical expenses.

Expenses you can claim

To claim transportation and travel expenses, all of the following conditions must be met:

• Substantially equivalent medical services were not available near your home.
• You took a reasonably direct travelling route.
• It is reasonable, under the circumstances, for you to have travelled to that place for those medical services.

If a medical practitioner certifies in writing that you were not able to travel alone to get medical services, you can also claim the transportation and travel expenses of an attendant.

If you have travel expenses related to medical services and you also qualify for northern residents deductions (line 25500 of your tax return), you may be able to choose how to claim your expenses. For more information, see Form T2222, Northern Residents Deductions .

At least 40 kilometres

If you had to travel at least 40 kilometres (one way) from your home to get medical services, you may be able to claim the public transportation expenses you paid (for example, taxis, bus, or train) as medical expenses. Where public transportation is not readily available, you may be able to claim vehicle expenses.

At least 80 kilometres

If you had to travel at least 80 kilometres (one way) from your home to get medical services, you may be able to claim accommodation, meal, and parking expenses in addition to your transportation expenses as medical expenses. This may include travelling outside Canada.

Meal and vehicle expenses

You can choose to use the detailed or simplified method for calculating meal and vehicle expenses. If you use the detailed method, you have to keep all receipts and records for your 12-month period.

For more information and to find out about the rates used to calculate these travel expenses, go to Meal and vehicle rates used to calculate travel expenses or call the CRA's Tax Information Phone Service at 1-800-267-6999 .

Accommodations

You must keep receipts for all accommodation expenses and you must be able to show that the amount paid for accommodation is necessary because of the distance travelled and your medical condition. Claim the amount for accommodation as shown on your receipts.

Expenses you cannot claim

If you traveled less than 40 kilometres from your home to get medical services, you cannot claim travel expenses as medical expenses. You also cannot claim travel expenses if you travel only to pick up a device or medication.

Paul lives in St-Hyacinthe and had to travel over 40 kilometres one way (but less than 80 kilometres) to Montréal to get medical services because similar services were not available within 40 kilometres of his home. He had to use his vehicle because no public transportation was readily available.

Paul can claim his vehicle expenses. He can choose the detailed or simplified method to calculate the amount to claim on his tax return.

Maria had to travel with her son Michael from Sydney to Halifax (over 80 kilometres one way) to get medical services for herself. Maria’s doctor gave her a letter certifying that she was not able to travel without an attendant.

Since similar medical services were not available near her home, Maria took a direct travelling route, and it was reasonable, under the circumstances, for her to travel to Halifax to get medical services.

The day after they arrived in Halifax, Maria checked into the hospital for surgery and had to stay for two weeks .

Michael stayed in a hotel nearby and during the day, helped her with meals and personal care at the hospital. Michael drove his mother back to Sydney afterwards.

Maria can claim all reasonable travel expenses for herself and her son while en route, to and from Halifax and for the two-week period of medical services in Halifax.

Jennifer had to travel from Prince Rupert to Vancouver (over 80 kilometres one way) to get medical services. Her husband Stephen drove her there. Jennifer stayed in the hospital in Vancouver for three weeks but Stephen drove back to Prince Rupert after dropping her off at the hospital. Jennifer’s doctor gave her a letter certifying that she was not able to travel without an attendant.

Since similar medical services were not available near her home, Jennifer took a direct travelling route, and it was reasonable, under the circumstances, for her to travel to Vancouver to get medical services.

Stephen came to visit Jennifer once during her three-week stay in the hospital. When Jennifer was ready to go home, Stephen drove to Vancouver to take her home.

Jennifer can claim reasonable travel expenses for herself and her husband for the trip from Prince Rupert to Vancouver and then for the drive back home. However, neither Jennifer nor Stephen can claim any expenses for the trip Stephen made to visit Jennifer in the hospital.

John had to travel from Winnipeg to Germany (over 80 kilometres one way) to get medical services. He flew there and back, and stayed at a hotel for one week while he received the services from a medical practitioner.

Since similar medical services were not available near his home, John took a direct travelling route, and it was reasonable, under the circumstances, for him to travel to Germany to get medical services.

John can claim all reasonable travel expenses for himself while en route, to and from Germany and for the one week period of medical services in Germany.

Common medical expenses you cannot claim

There are some expenses that are commonly claimed as medical expenses in error. The expenses you cannot claim include the following:

• athletic or fitness club fees
• birth control devices (non-prescription)
• blood pressure monitors
• liposuction
• hair replacement procedures
• filler injections (for removing wrinkles)
• teeth whitening

A cosmetic surgery expense may qualify as a medical expense if it is necessary for medical or reconstructive purposes, such as surgery to address a deformity related to a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease;

• diaper services
• health plan premiums paid by an employer and not included in your income
• liquid meal replacement products
• mobile applications that help a person manage their blood glucose level (without actually measuring it)
• nebulizer to turn liquid medicine into a fine mist that can be inhaled
• organic food
• over-the-counter medications, vitamins, and supplements, even if prescribed by a medical practitioner (except vitamin B12 )
• personal response systems such as Lifeline and Health Line Services
• provincial and territorial plans such as the Alberta Health Care Insurance Plan and the Ontario Health Insurance Plan (for a complete list of non-eligible plans, go to Lines 33099 and 33199 – Eligible medical expenses you can claim on your return )
• radon testing (for example, a radon test kit or the services of a radon measurement professional) or a radon mitigation treatment system (including installation)
• the part of medical expenses (including travel expenses) for which you can get reimbursed, such as reimbursements from a private insurance

If you are filing your tax return electronically or on paper, do not send any supporting documents. Keep them in case the CRA asks to see them later.

Receipts must show the name of the company or individual to whom an expense was paid. Receipts for attendant care or therapy paid to an individual should also show the individual’s social insurance number.

Receipts should also show the purpose of the payment, the date of payment, the name of the patient, and, if applicable, the medical practitioner who prescribed the purchase or gave the service.

In addition to receipts, the CRA may ask to see proof of payment, such as bank or credit card statements. If you are claiming amounts for a dependant who is 18 or older, the CRA may ask you for proof of support, such as a lease agreement or grocery receipts.

Digital services for individuals

The CRA’s digital services are fast, easy, and secure!

My Account lets you view and manage your personal income tax and benefit information online. Use My Account throughout the year to:

• view your benefit and credit information and apply for certain benefits
• view your notice of assessment or reassessment
• view uncashed cheques and request a replacement payment
• change your address, phone numbers, direct deposit information, marital status, and information about children in your care
• manage notification preferences and receive email notifications when important changes are made to your account
• check your tax-free savings account (TFSA) contribution room, your registered retirement savings plan (RRSP) deduction limit, and your first home savings account (FHSA) participation room
• track the progress of certain files you have submitted to the CRA
• make a payment online to the CRA with the My Payment service, create a pre-authorized debit (PAD) agreement, or create a QR code to pay in person at Canada Post for a fee. For more information on how to make a payment, go to Payments to the CRA
• view and print your proof of income statement
• manage authorized representatives and authorization requests
• submit documents to the CRA
• submit an audit enquiry
• link between your CRA My Account and Employment and Social Development Canada (ESDC) My Service Canada Account
• manage Multi-factor authentification settings

To sign in to or register for the CRA's digital services, go to:

• My Account if you are an individual
• Represent a Client if you are an authorized representative

Receive your CRA mail online

Set your correspondence preference to "Electronic mail" to receive email notifications when CRA mail, like your notice of assessment, is available in your account.

For more information, go to Email notifications from the CRA .

For more information

If you need help.

If you need more information after reading this guide, go to  Eligible medical expenses you can claim on your tax return or call 1-800-959-8281 .

Direct deposit

Direct deposit is a fast, convenient, and secure way to receive your CRA payments directly into your account at a financial institution in Canada. For more information and ways to enrol, go to Direct deposit or contact your financial institution.

Forms and publications

The CRA encourages you to file your return electronically. If you need a paper version of the CRA's forms and publications, go to Forms and publications or call 1-800-959-8281 .

Electronic mailing lists

The CRA can send you an email when new information on a subject of interest to you is available on the website. To subscribe to the electronic mailing lists, go to Electronic mailing lists .

Tax Information Phone Service (TIPS)

For tax information by telephone, use the CRA's automated service, TIPS, by calling 1-800-267-6999 .

Teletypewriter (TTY) users

If you use a TTY for a hearing or speech impairment, call 1-800-665-0354 .

If you use an operator-assisted relay service , call the CRA's regular telephone numbers instead of the TTY number.

Formal disputes (objections and appeals)

You have the right to file an objection if you disagree with an assessement, determination, or decision.

For more information about objections and related deadlines, go to File an objection .

CRA Service Feedback Program

Service complaints.

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the CRA. For more information about the Taxpayer Bill of Rights, see the Taxpayer Bill of Rights .

You may provide compliments or suggestions, and if you are not satisfied with the service you received:

• Try to resolve the matter with the employee you have been dealing with or call the telephone number provided in the correspondence you received from the CRA. If you do not have contact information for the CRA, go to Contact information .
• If you have not been able to resolve your service-related issue, you can ask to discuss the matter with the employee’s supervisor.
• If the problem is still not resolved, you can file a service-related complaint by filling out Form RC193, Service Feedback . For more information on how to file a complaint, go to Submit a service feedback .

If you are not satisfied with how the CRA has handled your service related complaint, you can submit a complaint with the Office of the Taxpayers’ Ombudsperson .

Reprisal complaints

If you have received a response regarding a previously submitted service complaint or a formal review of a CRA decision and feel that you were treated impartially by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaint .

For more information about complaints and disputes, go to Reprisal complaints .

Acoustic coupler

Air conditioner

Air filter, cleaner, or purifier

Altered auditory feedback devices

Ambulance service

Assisted breathing devices

Attendant care expenses

Audible signal devices

Baby breathing monitor

Bathroom aids

Bliss symbol boards

Blood coagulation monitors

Bone marrow transplant

Braces for a limb

Braille note-taker devices

Braille printers, synthetic speech systems, large print-on-screen devices

Breast prosthesis

Cancer treatment

Cannabis – see Medical cannabis (marihuana)

Catheters, catheter trays tubing

Certificates

Computer peripherals

Construction expenses – see Renovation or construction expenses

Cosmetic surgery

Deaf-blind intervening services

Dental services

Devices or software

Dialysis (kidney machine)

Diapers or disposable briefs

Driveway access

Drugs and medical devices bought under Health Canada’s Special Access Program

Egg and sperm freezing and storage

Elastic support hose

Electrolysis

Electronic bone healing device

Electronic speech synthesizers

Electrotherapy devices

Environmental control system (computerized or electronic)

Extremity pump

Fertility-related procedures  

Glasses – see Vision devices

Group home – see Attendant care and care in a facility

Hearing aids

Heart monitoring devices

Hernia – see Truss for hernia

Hospital bed

Hospital services

Hot tub – see  Whirlpool bath treatments

Ileostomy and colostomy pads

Infusion pump

Injection pens

Insulin or substitutes

In vitro fertility program

Kidney machine – see Dialysis (kidney machine)

Laboratory procedures or services

Large print-on-screen devices

Laser eye surgery

Lift or transportation equipment

Liver extract injections

Medical cannabis (marihuana)

Medical devices bought under Health Canada’s Special Access Program – see Drugs and medical devices bought under Health Canada’s Special Access Program

Medical services provided by qualified medical practitioners

Medical services provided outside of Canada

Moving expenses

Needles and syringes

Note-taking services

Nursing home – see Attendant care and care in a facility

Optical scanners

Organ transplant

Orthodontic work

Orthopaedic shoes, boots, and inserts

Osteogenesis stimulator (inductive coupling)

Ova – see In vitro fertility program

Ova freezing – see Egg and sperm freezing and storage

Oxygen and oxygen tent

Oxygen concentrator

Page turner devices

Personalized therapy plan

Phototherapy equipment

Premiums paid to private health services plans

Pre-natal and post-natal treatments

Prescription drugs and medications

Pressure pulse therapy devices

Radon testing

Reading services

Real-time captioning

Rehabilitative therapy

Renovation or construction expenses

Respite care expenses – see Attendant care and care in a facility

School for persons with an impairment in physical or mental functions

Sign-language interpretation services

Software – see Devices or software

Sperm – see In vitro fertility program

Sperm freezing – see Egg and sperm freezing and storage

Standing devices

Surrogate mother – see Fertility-related procedures

Syringes – see Needles and syringes

Talking textbooks

Teletypewriters

Television closed caption decoders

Transportation equipment – see Lift or transportation equipment  

Treatment centre

Tutoring services

Vehicle device

Vision devices

Visual or vibratory signalling device

Vitamin B12

Voice recognition software

Volume control feature (additional)

Walking aids

Walking cast – see Braces for a limb

Water filter, cleaner or purifier

Whirlpool bath treatments

Page details

• Credits & Deductions
• Income & Investments
• CRA Tax Updates
• Getting Organized
• Family & Children
• Homes & Rental Properties
• Medical & Disability
• Expats & Non-Residents
• Employment & Employees
• Foreign Income & Property
• Self-Employed & Freelance
• Small Business
• Unemployment
• After you File

Claiming Medical Expense Travel Credits

Canada is vast and some of the most beautiful places in our great country to live are quite remote. One of the drawbacks of living outside a major city center can be that if you need medical care, you may need to travel a long way to get it.  Thankfully, depending upon how far you have to go for your care, the government of Canada may allow you to claim medical expense travel credits.

Many of the expenses that you may incur to travel for medical treatment or expenses that you incur on behalf of your spouse or dependants are tax-deductible.  Eligible expenses may include transportation costs, meals, and accommodation for both the patient and an attendant if required. Let’s explore the allowed eligible expenses and how to claim them .

How Far Do I Need to Have Travelled to be Eligible for Claiming Medical Expense Travel Credits?

Anyone who has had to pay for parking at a hospital knows how expensive it can get. While it would be nice to be able to deduct those expenses , unless you traveled more than 80 km for medical care, your parking expenses aren’t deductible.

To claim transportation and travel expenses with the CRA, the following conditions must be met:

• There were no equivalent medical services near your home
• You took a direct route
• It was reasonable for you, under the circumstances, to travel to the place you did for those medical services

If you traveled at  least 40 km  (one way) to get medical services, you can claim the cost of public transportation (ex. bus, train, or taxi fare). If public transportation isn’t available, you may be able to claim vehicle expenses.

If you traveled  more than 80 km  (one way), you can claim vehicle expenses, accommodation, meals, and parking expenses.

Whether you traveled more than 40km or 80 km, if a medical practitioner has certified that you can’t travel without help, you may also claim the travel expenses you pay for an attendant.

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How are Vehicle Costs Calculated by the CRA?

If driving to get medical care is necessary, you can claim the cost of fuel, oil, license fees, insurance, maintenance, and repairs, including parts . Depreciation, provincial tax, and finance charges are all eligible.

There are two methods to calculate vehicle expenses — the detailed and the simplified method .  If you use the detailed method, keep track of the number of kilometers driven in the 12-month period you choose for medical expenses. Then, calculate the percentage of your total vehicle expenses that relate to the kilometers driven for medical treatment.

For example; if you drove 10,000 km during the year and 5000 of those kilometers were related to medical treatment (more than 40 km away), you can claim half of your total vehicle expenses on your tax return.

If you chose the simplified method, you only need to determine how many km you traveled for medical treatment in the 12-month period. Multiply the km  by the rate for your province . The rates are different for each province or territory, are updated annually, and can be found at the Canada Revenue Agency’s website.

Whether you choose the detailed method or the simplified method, be sure to save all your receipts in case the Canada Revenue Agency (CRA) asks to see them later.

How do I Claim Meals?

• You need to have traveled more than 80 km for care to claim meals with the CRA. Just like vehicle costs, you can choose the use the detailed method or the simplified method.
• To use the detailed method, you tally the actual cost of each meal .
• If you choose the simplified method, you may claim up to $17 per meal, up to a maximum of $51 per day , including sales tax.
• Whether you choose the detailed method or the simplified method, be sure to keep those receipts.

What are the Rules for Accommodations?

• To claim accommodations, like meals, you need to have traveled more than 80 km for medical services.
• Accommodation claims are based on your receipts, and only the cost — with taxes — of the stay is eligible . Extra costs like room service, movies, and phone calls are not included.

Travel outside of Canada

Outside of Canada medical expenses may also be eligible. You have to meet all the following conditions:

• practitioners must be authorized in their country of service by law. In the case of hospital stays, the institution must be public or a licensed private hospital.
• the  health care services you receive must not be available in your area, and you must be required to travel to access them .

Travel Companions

If your spouse, your common-law partner, or another individual travels with you, you may be able to include that person’s expenses as part of your medical expense tax credit. To include these expenses, you need to have  a note from your physician or another authorized medical practitioner that certifies that you were unable to travel alone .

If you qualify, you can write off the cost of your travel companion’s transit tickets, accommodation, and meals, depending on how far you have traveled for your medical care.

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Tax tip: can i claim nursing home expenses as a medical expense, medical expenses you can claim on your tax return, canadian tax faq’s for newlyweds.

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Can You Deduct Medical Expenses From Your Taxes?

Yes, you can claim medical expenses on taxes. For tax year 2023, the IRS permits you to deduct the portion of your medical expenses that exceeds 7.5% of your adjusted gross income, or AGI.

“To take advantage of this, you must itemize your medical expense deductions on your IRS 1040,” said Danielle K. Roberts, Medicare insurance expert and co-founder of Boomer Benefits. “Make sure that the total of all itemized deductions is more than the standard deduction or it won’t benefit you.”

How To Calculate Your Tax Deduction for Medical Expenses

You can deduct the amount you spend on certain types of medical care and products when that amount is above 7.5% of your AGI. Your AGI is your income after adjustments for deductions like student loan interest , individual retirement account contributions and educator expenses.

To calculate the deduction, first calculate your adjusted gross income by completing Form 1040 or Form 1040-SR . Then enter the following information on the first four lines of Schedule A (Form 1040) :

• Add up all your medical expenses for the year, and enter the total on line 1.
• Enter your adjusted gross income — it’s the amount shown on line 11 of your Form 1040 or 1040-SR — on line 2.
• Multiply your AGI by 0.075, which is 7.5% (line 3). Your expenses must exceed this amount to be deductible.
• Subtract your expenses from the product of your AGI times 0.075 to find your actual deduction, which you’ll enter on line 4.

Here’s a real-world example: Say you have an AGI of $50,000 . Multiply $50,000 by 0.075 to get $3,750. You’d need over $3,750 in medical expenses to claim a deduction. With a hypothetical $6,500 in medical expenses, subtracting your $3,750 base amount from the $6,500 in expenses equals $2,750, which is your deduction if you choose to itemize rather than take the standard deduction.

What Medical Expenses Are Tax Deductible?

The IRS defines medical expenses 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. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists and other medical practitioners. They include the costs of equipment, supplies and diagnostic devices needed for these purposes.”

For example:

• Fees to doctors, surgeons, dentists, chiropractors, psychiatrists, psychologists and other providers of professional services
• Laboratory fees that are part of medical care
• Medical insurance premiums beyond the portion your employer pays and that you pay with after-tax income
• Long-term care and long-term care insurance premiums, up to certain limits
• Inpatient alcohol and drug treatment programs
• Ambulance service
• Dental services like dentures, fillings and braces
• Weight loss programs for a specific disease diagnosed by a physician
• Modifications, like wheelchair ramps, to your home for medical care
• Equipment and supplies, such as breast pumps, for nursing mothers
• Insulin and prescription drugs
• Medical equipment and supplies like glasses, contacts, hearing aids, crutches and similar medical devices
• Guide dog or other service animal
• Cosmetic surgery required due to a disease or accident
• Removing lead-based paint from a damaged surface within the reach of a child who has or has had lead poisoning
• Costs of attending a conference concerning a chronic condition of yours, your spouse’s or your dependent’s
• Stop-smoking programs, but not nonprescription drugs like nicotine gum or patches
• Out-of-pocket expenses, such as gas and oil, when you use a car for medical reasons

For a complete list of deductible medical expenses, check IRS Publication 502 .

Expenses That Don’t Count as Tax Deductions

Of course, not every expense you see as medically related is one that the IRS would agree with. You can’t include medical expenses for which you were reimbursed or that were paid directly to the hospital or doctor, for example. Here’s a partial list of other expenses that won’t qualify, according to the IRS:

• Funeral expenses
• Most cosmetic surgery
• Travel that a doctor recommended for rest or a change
• Illegal treatments or substances
• Diet food expenses
• Nonprescription drugs except insulin
• Nicotine patches or gum
• Teeth whitening
• Dancing lessons
• Swimming lessons

What Are Other Tax-Advantaged Ways To Deal With Medical Expenses?

Unfortunately, not everyone will be able to itemize their medical expenses. But there are other tax-advantaged options that can help you save on these costs. Here are a few to consider.

Health Savings Account

An HSA is a type of savings account that allows you to set aside pretax funds to pay for qualifying medical costs. You can only contribute to an HSA if you have an eligible high-deductible health plan.

HSA contributions that are unused at the end of the year automatically roll over to the next year, which allows you to build up your balance for future medical expenses.

Flexible Spending Account

An FSA is an account that you — and possibly your employer — put pretax funds into to pay for qualifying medical and dental expenses for you, your spouse and any dependents.

In general, you must use the funds in your FSA within the year, but your employer has the option to provide you with a grace period of up to 2 1/2 additional months or allow you to carry over up to $640 in unused funds to the following year.

Health Reimbursement Arrangement

An HRA is a group health plan funded by an employer. Employees receive tax-free reimbursements for qualified medical expenses up to a preset dollar amount each year. One advantage of this type of account is that unused dollar amounts can be rolled over for use in future years.

Is It Worth Claiming Medical Expenses on Taxes?

Although writing off medical expenses as deductions could make for a healthier bottom line on your tax return, the standard deduction might make more sense for you. In either case, you can also look into other tax-advantaged ways to pay medical bills , such as health savings accounts, flexible spending accounts and health reimbursement arrangements — solutions that could shoulder at least part of the financial burden.

• Yes. You can deduct medical insurance premiums beyond the portion your employer pays and that you pay with after-tax income.
• Yes, copays are deductible as long as they pay for a deductible expense.
• You’ll have to calculate your deductions both ways to see which is the most beneficial. The 2023 tax write-off for people who take the standard deduction is $13,850 for single and individual filers, $27,700 for married joint filers and $20,800 for heads of household.
• IRS tax rates for 2023 are listed here . Rates for 2024 are listed here .
• The FICA tax rate is 15.3% of your gross wages. The tax is divided between Social Security, which receives 6.2%, and Medicare, which receives 1.45%. If you're a W-2 employee, your employer pays half.
• Short-term capital gains are taxed at your federal income tax rate. Long-term capital gains tax rates vary from 0% to 20%, depending on your income.
• Most taxpayers receive their refunds within 21 days, according to the IRS, but how long it takes to get your refund depends on whether you request a check or direct deposit (direct deposit is faster) and whether your return requires additional review.

Daria Uhlig , Cynthia Measom , Cody Bay and Michael Keenan contributed to the reporting for this article.

This article originally appeared on GOBankingRates.com : Are Medical Expenses Tax Deductible?

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F.S.A. vs. H.S.A.: What to Know About the Accounts That Pay Medical Costs

Flexible spending accounts and health savings accounts both have tax benefits, but both may also have drawbacks, two reports found.

By Ann Carrns

Two types of accounts can help you pay for medical costs and have tax benefits, but both also have possible downsides, two recently published reports found.

The two are flexible spending accounts and health savings accounts — better known as F.S.A.s and H.S.A.s. They’re related, though they have some big differences.

F.S.A.s are available only through employers. Workers set aside a fixed amount of money each year to be deducted from their paycheck before taxes, reducing their taxable income while helping them pay for out-of-pocket medical costs. But if workers change employers, the account doesn’t move with them.

Workers also face deadlines for spending their F.S.A. money on eligible care or products, although many employers offer grace periods or the option to roll over some funds from one year to the next.

In a new analysis of more than three million accounts, the Employee Benefit Research Institute found that more than half of participants (52 percent) failed to spend down their accounts in time and forfeited at least part of their contributions back to their employers in 2022, up from 44 percent in 2019.

“We did notice high shares of account holders forfeited funds,” said Jake Spiegel, a research associate at the institute and the author of the report.

The average amount forfeited in 2022 was $441, compared with $369 in 2019, the analysis found. The exact amounts forfeited in 2020 and 2021 are unclear because the “use it or lose it” rules were relaxed during the pandemic. It may be that F.S.A. account holders were caught off guard by the return to pre-Covid forfeiture rules in 2022, Mr. Spiegel said.

H.S.A.s have higher contribution limits than F.S.A.s and don’t have any spending deadlines. Funds in them can grow indefinitely, and the accounts move with you if you change jobs. (If your health plan qualifies, you can also open one on your own, even if your employer doesn’t offer the option.)

H.S.A.s pack potentially powerful tax breaks: Contributions can be deducted pretax from your paycheck (or deducted on your tax return); interest or investment gains are tax free, so the accounts can be used for long-term savings; and withdrawals are tax free if the money is spent on eligible medical care and products. (Two states, California and New Jersey, tax contributions and investment gains at the state level, according to the investment company Vanguard .)

Use of the accounts has surged, with about 36 million H.S.A.s in 2023 holding more than $116 billion.

A big catch, however, is that H.S.A.s are available only with certain types of health plans with high deductibles (an amount you pay for care before insurance pays). The accounts were originally offered to make the plans with high deductibles more attractive. While the coverage often offers lower monthly premiums, patients typically pay more costs out of pocket. H.S.A.s can offset some of those costs because employers often chip in some cash.

Some progressive groups see the accounts as most benefiting the affluent, who can afford to pay for care out of pocket while investing their H.S.A. contributions for use in retirement. (Withdrawals remain tax free when used for health care and are taxed as ordinary income, without penalty, when spent on nonqualifying purchases after age 65.)

“H.S.A.s primarily serve as a tax shelter for people with high incomes,” said Gideon Lukens, senior fellow and director of research and data analysis at the Center on Budget and Policy Priorities, a progressive think tank. Some workers, however, may be offered a high-deductible health plan as their only coverage option, he said, which can cause financial strain.

The Consumer Financial Protection Bureau reported this month that H.S.A.s had room for improvement. Many accounts pay anemic interest rates on balances — typically less than 1 percent, even as interest rates on many online savings accounts have risen. And they often have fees — like monthly management fees, fees for paper statements and exit fees if savers want to move their balances elsewhere — that can “chip away” at the funds, Rohit Chopra, the bureau’s director, said in a statement .

“Many consumers do not realize the fees, switching costs and low interest yields that will come with the accounts,” he added.

For example, the report said, two providers, HealthEquity and HSA Bank, charge a $25 fee for closing an account.

“Most H.S.A. providers charge fees to help cover essential overhead costs,” a HealthEquity spokesperson said in an emailed statement. “We work to minimize these, communicate with our members about them and provide value that exceeds any administrative expenses. Accounts are closed for many reasons, and account holders are given notice in advance.”

The company added that it was reviewing the consumer bureau’s report and took “all feedback seriously.”

In a statement, HSA Bank said that “the closure fees are an offset to managing a complex transfer and liquidation process” and added that the fees “are disclosed to every consumer and impacts a very small percentage of account holders in any given year.” .

In some cases, transferring funds from one H.S.A. to another can take weeks, during which the original account continues to charge a monthly fee, the report said. It also cited consumer complaints about funds that were lost during the transfer from one bank to another.

The research firm Morningstar evaluated 10 H.S.A. plans in October using criteria like fees, interest on savings and investment choices. (The firm looked only at accounts available directly to individuals, rather than those offered through employers, so details may vary.) Fidelity Investments was the only provider rated “high” overall for both spending and investing. Its H.S.A. offered an interest rate on savings well above 2 percent, while its competitors paid less than 1 percent.

“That’s a big shortcoming,” said Greg Carlson, senior manager research analyst at Morningstar.

Here are some questions and answers about health accounts:

How can I best avoid having money left over in an F.S.A.?

Sara Taylor, senior director of employee spending accounts at the benefits consultant WTW, suggests taking a close look at your past medical expenses before deciding how much to contribute to your F.S.A. “It’s hard to do, for some people,” she said. But looking at your “explanation of benefits” for last year — the forms that describe what treatments you had and what share of the cost you owe — can help you come up with a reasonable number. Was last year an anomaly because you had major surgery? If so, you may want to contribute a lower amount. Many employers offer online tools to help you make an estimate.

It also helps to know what you can spend F.S.A. money on. That way, if you find yourself with a balance at the end of the year, you can use the money to buy eligible over-the-counter items like pain medication and even sunscreen. A helpful resource is the F.S.A. Store , which includes an online alphabetical list of eligible and ineligible items.

If I forfeit cash in my F.S.A. to my employer, have I wasted my money?

No one wants to give up funds, but workers can still come out ahead, compared with not contributing, because of the tax benefits of F.S.A. contributions, Mr. Spiegel said. Say a hypothetical worker with a 30 percent marginal tax rate (including federal, state, payroll and local taxes) contributes $1,500 to an F.S.A., realizing $450 in tax savings. If the worker forfeits less than $450 back to the employer, the worker will still have benefited from participating.

How much can I contribute to health accounts in 2024?

This year, an employee can contribute up to $3,200 in payroll deductions to an F.S.A. (Few contribute the maximum, however, possibly because of “inertia,” Mr. Spiegel said. The amount set aside tends to remain constant year to year, perhaps because employees aren’t aware the limit can change annually.) The average contribution in 2022 was just under $1,300.

For H.S.A.s, individuals can contribute up to $4,150 in 2024, and families can contribute up to $8,300. People 55 and older can contribute an extra $1,000. For 2025 , the limit for self-only coverage will rise to $4,300, and to $8,550 for family coverage.

A Guide to Making Better Financial Moves

Making sense of your finances can be complicated. the tips below can help..

Inheriting money after the death of a loved one while also grieving can be an emotional minefield, particularly for younger adults. Experts share ways to handle it wisely .

Either by choice or because they are priced out of the market, many people plan to never stop renting. Building wealth without home equity  requires a different mind-set.

You may feel richer as you pay your mortgage down and home values go up. As a result, some homeowners end up with a lot of home equity but low retirement savings. Here’s the problem  with that situation.

Can your investment portfolio reflect your values? If you want it to, it is becoming easier with each passing year .

The way advisers handle your retirement money is about to change: More investment professionals will be required to act in their customers’ best interest  when providing advice about their retirement money.

The I.R.S. estimates that 940,000 people who didn’t file their tax returns  in 2020 are due back money. The deadline for filing to get it is May 17.

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Some Tips to Save Income Tax on Salary

Income tax is charged on the annual income earned by an individual. The amount of tax paid will depend on how much money you earn as income over a financial year.

The tax filing season in every assessment year acts as a task for salaried individuals.

Being an Indian taxpayer, you need to know about your tax slab and the various income tax deductions for salaried employees.

It will help you to figure out how tax saving for the salaried class works and avoid complications that may arise during tax planning.

If you find the appropriate financial instruments, you can reduce the amount of income tax payable for salaried employees.

However, understanding the income tax deductions for salaried employees can become complicated if not done well.

There are several tips that allow tax benefits for salaried employees and can have a significant impact on your financial planning.

So, let’s take a deep look into the tax-saving options for salaried people.

Conveyance Allowance

With a conveyance allowance, also called a transport allowance, you can get your salary structured in such a way that your company will provide you with a transport allowance.

Employees of a company are given transportation allowances to compensate for their travel from their homes to their respective workplace locations.

Allowances are generally offered to employees on top of their basic salary.

The company offers car expense reimbursement to its employees if these expenses are incurred for official duties.

House Rent Allowance (HRA)

You can claim HRA if you are paying rent and living in rented accommodation. HRA can be fully or partially exempt from tax.

If you don’t live in rented accommodation but still get a house rent allowance, the allowance will be fully taxable.

An HRA exemption is also available if you live with your parents. You can pay them rent. But your parents must include this rental income on their tax return.

Don’t worry if you were unable to submit rent receipts to your employer on time. You can claim the HRA exemption at the time of filing your tax return.

Remember to keep rent receipts safe and maintain details of payments made towards rent.

Leave Travel Allowance (LTA)

Tax on fare expenses for a trip made within India can be used to save tax on LTA. For travel within India, an employee can avail an exemption for the trip under LTA.

This exemption is only for the shortest distance on a trip. Only the trip taken with your spouse, children, and parents is eligible for reimbursement.

As a result, you can claim this exemption after incurring the expenses and submitting the bills to your employers.

This tax benefit can only be claimed via your employer, so remember to submit LTA bills on time.

Medical Expenses

Taxpayers can save taxes on the amount they have spent on medical treatments. If people provide their medical bills, then their medical expenses become tax-free.

Employers also provide medical benefits to all employees. The maximum amount of money people can claim using medical bills in a year is Rs. 15, 000.

The Income Tax Act allows deductions under Section 80D, Section 80DD, and Section 80DDB on income that has been spent by the taxpayers insuring their own health or their relative’s health.

The deduction amount may vary for each section and depends on the type of insurance policy the taxpayer has purchased.

Education Loan

Education is one area towards which we pay a lot, spending huge amounts to arm ourselves and our loved ones with degrees.

People can save tax by opting for an education loan for higher education for themselves, their children, spouse, etc.

Section 80E of the Income Tax Act allows people to claim a deduction on the amount they have spent to pay the loan interest.

There is no maximum limit on the number of deductions they can claim. Section 80E only allows individual taxpayers to claim deductions.

The lower your taxable income, the lower your tax liability. There are multiple provisions by which you can lower your taxable income.

For example, under section 80C, you can save Rs 1.5 lakhs annually. 80C investments include FDs, Equity Linked Savings Schemes, insurance policies, etc.

Every month, the employer deducts a part of your total income tax as Tax Deducted at Source (TDS). This is a significant portion for a salaried employee.

Furthermore, the employer provides details of the tax deducted on Form 16. While filing returns, remaining you are entitled to make the remaining payment.

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Commuting Mileage: What You Need to Know About Commute Rules

While commuting to and from work technically is a work-related activity, it doesn’t qualify for tax-free reimbursements the way business mileage does. That’s because the IRS considers travel between someone’s primary place of work and home to be a personal expense. 

As an employer, you need to make sure you’re not reimbursing commutes because it could make you non-compliant with tax rules.  As a driver, you should be able to distinguish commuting miles from business miles for the same reason. Getting reimbursed for a commute would mean that you’d get income that should’ve been taxed — and that would make your tax return incorrect and could land you with an audit.

This article unpacks the IRS's stance on commuting miles and explains how to keep track of mileage correctly to avoid over-reimbursing.

What is commute mileage?

A commute refers to regular trips between your home and your primary place of work, which can be an office, factory, shopping mall, or any other location in which you regularly work. Any commuting mileage driven by a self-employed person or an employee doesn’t qualify for a tax deduction or tax-free mileage reimbursement. 

Interestingly, any drive that begins or ends at home, like a drive from your home to a client’s office in the morning may also be considred a commute in the eyes of the IRS. 

The distinction between business mileage and commute mileage is crucial for businesses and their drivers because business mileage is deductible and can be reimbursed tax-free at standard rates, but commute mileage cannot.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

Some exceptions

If a person works primarily from home — a trend that has become increasingly popular — home becomes that person’s primary workplace, so any work-related trip (like visiting the company’s headquarters) can’t be qualified as commuting. This means it can count as business mileage, and can be reimbursed.

What employers need to know about commute mileage

If your company reimburses employees for business mileage, commutes need to be excluded from your reimbursement amounts. 

Business mileage, like client meetings, vendor visits, and travel to conferences, is considered a business expense. That means employees can be reimbursed tax-free for these expenses at the standard rates set by the IRS each year. 

Commutes count as personal expenses and cannot be reimbursed tax-free. You can still reimburse employees for commute expenses (like paying for parking fees or transit passes) but these reimbursements need to be taxed like regular income.

What drivers need to know about commute mileage

Commutes are personal expenses and you can’t be reimbursed for them tax-free. That means if your employer accidentally reimburses your commute mileage as part of your regular business mileage, you’ll end up with under-reported income.

Your tax return may end up being incorrect, which could lead to penalties. That’s why tracking mileage and labelling trips accurately is as important for drivers as it is for managers.

How to Make Sure You’re Not Reimbursing Commutes

Every business that hires drivers needs a clear commute mileage policy. It’s the only way to both stay compliant and keep things fair for drivers and employers alike. What kind of commute mileage policy your business adopts depends on your needs. Smaller organizations may ask drivers to deduct their commute distances in their mileage logbook. 

Other organizations may prefer setting a single commute distance for their entire team, especially if they have a lot of drivers who all have different commute lengths. For example, a company can set their commute distance at 5 miles. That means all drivers get 5 miles deducted from their daily work mileage. This saves time because an admin wouldn’t have to calculate a new commute distance for every driver.

What’s the best way to track commutes?

If you have a small team, calculating commutes by hand or in a spreadsheet is an option. But you run the risk of errors, and it can take time and some mental energy to figure out each employee’s commute. 

Mileage tracking apps also often come with tools that help you track employee commutes. Commute Mileage, MileIQ’s commute tool, lets you set a commute distance for your whole team, and then automatically deducts it from employee’s drives labeled as  “Business + Commute.” Because commutes are deducted for you every time, this method generally saves a lot of effort and is likely more accurate.

But no matter which method you decide on, automating the process, whether with an app or an Excel sheet formula can help you avoid over-reimbursing and help your employees stay compliant.

Remember: Every Mile Counts!

Knowing you need to track commute mileage solves only a part of the problem..The real challenge is remembering to track it every single time. Even the shortest trips can add up to considerable mileage. Tracking all mileage, including commute miles, with an app like MileIQ means you never have to decipher a mileage log to decide which miles count.

*Note: The materials on this website have been prepared by MileIQ for informational purposes only and are not legal advice.

Still tracking miles by hand?

Check out more mileage guides.

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IRS increases mileage rate for remainder of 2022

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IR-2022-124, June 9, 2022

WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022. The IRS provided legal guidance on the new rates in Announcement 2022-13 PDF , issued today.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. For travel from January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03 PDF .

"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.” 

While fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs. 

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. 

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.

Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011.

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