Can I deduct medical expenses as a result of Covid-19?

It depends. The IRS lets you deduct medical, dental and other health expenses that fall above 7.5% of your adjusted gross income (that’s the part of your income that is taxable) for the year.16

For example, if your adjusted gross income is $50,000, first you would multiply that by 7.5% to find out that you can only deduct expenses that exceed $3,750. If you spent $5,000 in medical expenses in 2020, that means you can only deduct $1,250 in medical expenses.

But here’s the kicker: You can only deduct medical expenses if you choose to pass on the standard deduction and itemize your deductions instead.

Does it make sense to itemize your deductions? For 2020, the standard deduction is $12,400 for single filers and $24,800 for married couples. It really only makes sense to itemize if your itemized deductions (including medical expenses) are greater than the standard deduction, so choose wisely!