Inpatient & Outpatient Expenses - Tax Deductible?

[ugadawgs311]

From my understanding, expenses for inpatient treatment facilities are tax deductible. My question is: are expenses for outpatient treatment facilities tax deductible as well? Expenses for both the inpatient and outpatient treatment facilities were paid out-of-pocket. Thanks!

[Bsch4477]

Unreimbursed medical expenses are deductible as an itemized medical deduction subject to the 7.5 percent limitation. 

[MinhT1]

Inpatient and outpatient facility medical expenses paid out-of-pocket are both deductible.

The IRS has an extensive list of what you can and can’t deduct.

For tax year 2024, Medical Expenses are subject to the 7.5% rule and you can only claim the excess over 7.5% of your Adjusted Gross Income.

Please note that Itemized Deductions will only benefit your taxes when they exceed your standard deduction.

For tax year 2024, standard deductions are:

• $29,200 for married couples whose filing status is “married filing jointly” and surviving spouses;
• $14,600 for singles and married couples whose filing status is “married filing separately”; and
• $21,900 for taxpayers whose filing status is “head of household.”

The additional standard deduction for a blind taxpayer—i.e. a taxpayer whose vision is less than 20/200— and for a taxpayer who is age 65 or older at the end of the year is for each instance:

• $1,550 for married individuals; and
• $1,950 for singles and heads of household.

Here's how to enter your medical expenses in TurboTax:

1. Open or continue your return.
2. Navigate to the Schedule A section:

• TurboTax Online/Mobile: Go to Schedule A.
• TurboTax Desktop: Search for Schedule A and then select the Jump to link.

[ugadawgs311]

Thanks for the info! I was curious about outpatient facilities, since every publication I could find only specifically mentioned inpatient facilities. 

And just for added context, in the case of this particular inpatient treatment center, the expenses were not covered by insurance since the facility did not accept insurance. The expenses were two lump sum payments that covered the entire cost of the program (e.g. lodging, meals, treatment, etc.). Would these expenses still be deductible? 

The IRS' publication reads: "You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. This includes meals and lodging provided by the center during treatment." It does not mention outpatient facilities, and also stipulates "therapeutic centers." Since these expenses are quite large, I just want to make sure that they are in fact deductible before deducting them. 

Thanks for all the help!

[ugadawgs311]

Just wanted to follow up on this... are both outpatient and inpatient facilities tax deductible? I only see the word "inpatient" mentioned in IRS publications, so I'd just like to confirm that both inpatient and outpatient facilities are tax deductible. Thanks!

[DawnC]

Yes, medical expenses, in both inpatient and outpatient facilities, are deductible if you itemize.   There is a question specifically for facility fees.   Hospitals and clinics are covered.   

Medical facility fees include:

• Fertility treatment
• Hospital service fees
• Surgery
• Meals and lodging provided by a hospital during medical treatment
• Physical exam
• Psychiatric and psychological treatment
• Treatment at a drug or alcohol center

What doesn't count:

• Surgery for purely cosmetic reasons