Recommend Our Site to Your Friends!

Print This Page

Date:  22 Feb 2005
From:  Jennifer

Your page is great. Keep adding the questions people ask, even the dumb ones. They are not dumb to some people.

Are medications tax deductible? Is there a minimum, or is it even worth the trouble?

Answer

Date:  04 Mar 2005

Hello Jennifer,

The cost of prescription medications is deductible as a medical expense on Schedule A. See the instructions for Schedule A. 7.5% of adjusted gross income is subtracted from medical expenses and the excess is an itemized deduction. Many people find it hard to deduct their medical expenses because of the 7.5% "floor".

As an alternative, find out if your employer offers a salary reduction plan or health savings arrangement. With these plans, you can put aside funds on a pre-tax basis to pay medical expenses, including medications.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.