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How to calculate the itemized deduction for medical expenses?

Qualified medical expenses are potentially deductible as itemized deductions to the taxpayer, assuming they exceed all medical insurance reimbursements and 10 percent of AGI (beginning January 1, 2021). As a taxpayer, you must understand what types of medical expenses are allowed or disallowed.

To calculate your itemized deduction for medical expenses, use the visual above. Remember, only medical expenses that exceed 10% of the taxpayers adjusted gross income (AGI) are deductible. For example, if the taxpayer had an AGI of $100,000, only qualified medical expenses in excess of $10,000 would be tax deductible.


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