Tax Expert Addresses Medical Expense Deductions in Latest Q&A

In a recent edition of the “Ask the Editor” series, Joy Taylor, editor of The Kiplinger Tax Letter, answered nine pressing questions regarding tax deductions for medical expenses. The inquiries cover a range of topics from Medicare premiums to the deductibility of long-term care costs, providing valuable insights for taxpayers navigating the complexities of medical deductions.

Understanding Medical Expense Deductions

Taylor clarified that taxpayers who opt for the standard deduction on their Form 1040 cannot also claim medical expenses. The medical expense deduction must be itemized on Schedule A, creating a clear choice between the two options. This means that if a taxpayer is itemizing deductions, they forfeit the standard deduction.

One reader inquired specifically about the deductibility of Medicare premiums. Taylor confirmed that individuals who itemize can indeed deduct qualifying medical expenses, which include Medicare premiums, provided that the total medical expenses exceed 7.5% of their adjusted gross income. Eligible expenses encompass a variety of costs, such as out-of-pocket payments for various medical services, health insurance premiums, and certain transportation costs related to medical care.

Long-term Care and Other Expenses

Another question addressed the deductibility of long-term care costs. Taylor noted that unreimbursed expenses for long-term care services can be deductible if they meet certain conditions. Specifically, the care must be medically necessary for someone who is chronically ill, which includes those who are unable to perform at least two activities of daily living without assistance for a period exceeding 90 days.

When discussing long-term care insurance premiums, Taylor elaborated on the limitations associated with these deductions. For the year 2025, taxpayers aged 71 and older can deduct up to $6,020 per person, while those aged 61 to 70 can deduct up to $4,810. As the age brackets decrease, the deductible amounts also drop, with individuals aged 40 and younger capped at $480.

Taylor also addressed the deductibility of expenses related to drug rehabilitation programs, confirming that such costs are indeed considered deductible medical expenses. This category extends to various health and wellness costs, including smoking cessation programs and nutritional counseling for diagnosed conditions.

Interestingly, not all medical-related expenses qualify for deductions. For instance, cosmetic procedures, such as teeth whitening, do not qualify as deductible medical expenses. Taylor emphasized that expenses primarily aimed at improving appearance are generally not deductible.

The discussion also touched on the deductibility of costs associated with service animals. According to Taylor, expenses for acquiring and maintaining a service dog, including training and veterinary care, can be deducted as long as the total medical expenses exceed the 7.5% threshold.

Taylor concluded her segment by addressing the nuances of purchasing medicine from abroad. Taxpayers considering this option should be aware that federal law restricts the importation of many drugs. However, exceptions exist for legally imported medications and those purchased while traveling abroad.

In closing, Taylor reassured readers that the answers provided are for general informational purposes and encouraged individuals to consult with financial or tax advisors for personalized advice. As the tax landscape continues to evolve, readers are invited to submit their questions for future editions of “Ask the Editor.”