Tax Deductions for Medicare Premiums and Medical Expenses: What Retirees Should Know
- Steve Julal
- Jul 29
- 1 min read
Updated: Jul 30
If you’re 65 or older and enrolled in basic Medicare, you may already know that some important health services require extra coverage, and that extra coverage often comes with a higher price tag. Whether you're paying for a Medicare Advantage plan, a Medigap policy, or prescription drug coverage, those premiums can add up especially for couples. The good news? Some of these costs may be deductible on your tax return.
What Medical Expenses Are Deductible?
If you itemize deductions on your federal tax return, you can include Medicare premiums (Parts B, D, Medigap, and Advantage) and other medical expenses such as dental, vision, hearing aids, hospital visits, labs, and some long-term care. Medical travel is also deductible at 21 cents per mile in 2025 or by tracking actual vehicle costs.
Who Can Benefit from the Deduction?
To deduct medical expenses, you must itemize and your costs must exceed 7.5% of your AGI — a threshold that may be reachable for retirees with high medical bills. In 2025, standard deductions are $15,000 (single) and $30,000 (joint), and proposed legislation could increase these amounts, possibly impacting whether you itemize. If you're self-employed or an S corporation shareholder-employee, you can deduct health insurance premiums, including Medicare, without itemizing.
Need Help?
Sorting out medical deductions can be tricky, but you don’t have to do it alone. If you're unsure whether your expenses qualify or whether itemizing makes sense for you, reach out to us. We’re happy to review your situation and help you get the tax breaks you deserve.
