Are medications tax deductible?

March 16, 2005

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?


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.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Our Blog

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy