Your golden years are your best years! Make them shine!

  • Home
  • Personal Finance
  • Retirement Life
  • Saving & Spending

Could You Qualify For the New $25,000 Health Care Tax Deduction Coming in 2026?

December 8, 2025 · Personal Finance
health
Photo by Natali _ Mis From Shutterstock

How the Proposal Would Change Current Law

Under current tax rules, medical expenses are deductible only if:

  1. The taxpayer itemizes deductions, and
  2. Medical spending exceeds 7.5% of AGI

For example, a household earning $100,000 per year must spend more than $7,500 on qualifying medical costs before any portion becomes deductible—and only the amount beyond that threshold counts. This restriction makes the current medical deduction inaccessible for most taxpayers.

Hawley’s plan would eliminate both of these limitations:

  • The deduction would be available to all taxpayers, including those who take the standard deduction.
  • Taxpayers could deduct up to $25,000 per person, regardless of income level or percentage thresholds.
  • Qualifying expenses would include health insurance premiums paid directly by households, not just traditional medical services.

This structure would dramatically broaden eligibility and could allow some households to shield tens of thousands of dollars in income from federal taxation.

Pages: 1 2 3 4 5 6 7 8

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • social security numbers, downside
    When Will Your Social Security Checks Arrive? (What Beneficiaries Should Know)
  • Things Seniors Should Always Get from Costco
    8 Kirkland Products That No Longer Feel Like a Costco Bargain
  • medicare
    Medicare Costs Are Rising in 2026 — Here’s What to Expect
  • save money on healthcare
    Could You Qualify For the New $25,000 Health Care Tax Deduction Coming in 2026?
  • Medicare open enrollment
    Missed the Medicare Deadline? Your Options Aren’t Over Yet
  • stimulus check
    Trump Promises $2,000 Tariff Checks: Could You Qualify?

Related Articles

Photo-realistic, senior-friendly scene that visually introduces the section titled 'First, Understand the Big Picture: What Really Makes a State "Tax-Friendly"?.

The 8 Most Tax-Friendly States for Retirees in 2025

States with Special Breaks for Retirement Income Some of the best states for retirees are…

Read More →
Social Security number spousal

15 Tips to Protect Your Social Security Number From Scams

Leave your card at home Leave your Social Security card at home. Also, don’t enter…

Read More →

Your Complete Retirement Income Plan: A Step-by-Step Guide for Seniors

Step 2: Assembling Your Income Sources Once you know your monthly income target, it’s time…

Read More →
safe deposit box

10 Things That Belong in a Safe Deposit Box

Paper Stock and Bond Certificates While nowadays bookkeeping for stocks, bond ownership, and transactions might…

Read More →
scams data

Seniors, Read This: 9 Ways to Protect Personal Data Online

Avoid all pirate sites to ensure you’ll never become a phishing victim. While it’s super…

Read More →
2024 social security

Social Security Tax Wage Base Increases in 2024! Here’s What You Should Know

The 2024 Social Security tax wage base increases this year! Let’s find out more! New…

Read More →
social security benefits

Which States Tax Social Security Benefits in 2025?

Vermont Yes, this is one of the states that still tax Social Security benefits, but…

Read More →
Trump and Biden tariffs

Curious Who Will Pay for Trump’s Tariffs? You Will!

Are you giddy about Trump’s tariffs? Well…don’t be. Whether you’ve heard about it or not,…

Read More →
middle-class

6 Best and Worst States for Middle-Class Retirees

3. Pennsylvania Another state that is a big no-no for middle-class retirees is Pennsylvania. The…

Read More →
Retired in USA

Your golden years are your best years! Make them shine!

Inedit Agency S.R.L.
Bucharest, Romania

contact@ineditagency.com

Explore

  • Terms and Conditions
  • Privacy Policy
  • Do not sell my personal information
  • Subscribe
  • Unsubscribe
  • Contact
  • CA Privacy Policy
  • Request to Know
  • Request to Delete

Categories

  • Enjoying Retirement
  • Personal Finance
  • Saving & Spending

© 2025 Retired in USA. All rights reserved.