Retired in USA

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
save money on healthcare
Photo by Velishchuk Yevhen a Shutterstock

As health care costs continue to strain household budgets across the United States, Sen. Josh Hawley (R-Mo.) has introduced a sweeping new tax proposal aimed at easing the burden of medical expenses. Branded as the “No Taxes on Healthcare Act,” the plan would allow American households to deduct up to $25,000 per person in out-of-pocket medical spending from their taxable income. That figure includes not only direct medical expenses but also health insurance premiums that individuals pay themselves.

What makes Hawley’s proposal particularly notable is that this deduction would apply in addition to the standard deduction, which the vast majority of taxpayers already claim. Under current law, taxpayers typically must choose between taking the standard deduction or itemizing their deductions. Medical expenses are deductible today only for those who itemize—and only to the extent that those expenses exceed 7.5% of adjusted gross income (AGI). That structure limits the benefit to a relatively small subset of higher-expense households.

Hawley’s plan would upend that approach by making medical deductions “above the line.” This means taxpayers could claim the deduction regardless of whether they itemize or take the standard deduction. If enacted, it would represent one of the most dramatic expansions of health-related tax relief in decades.

But while the proposal has generated enthusiasm among some conservatives and middle-class advocacy groups, it also raises major fiscal, political, and equity questions—especially as Congress battles over the future of Affordable Care Act (ACA) subsidies set to expire at the end of 2025.

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Your email address will not be published.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 *

Search

Latest Posts

  • A woman measuring an empty living room with hardwood floors and a brick fireplace using a yellow tape measure. How Much Home Can You Really Afford on a Retirement Income?
  • Retro illustration of a winding highway dividing a coastal landscape with palm trees and a desert with saguaro cacti. 11 States Seeing the Most Retirees Move In
  • Watercolor illustration of a man standing on a stone terrace overlooking a winding hillside road and a distant city. 8 Social Security Rules That Could Shrink Your Check After a Spouse Dies
  • Watercolor illustration of an open weekly planner showing retirement activities like pickleball, gardening, choir, and hiking. 11 Retirement Hobbies That Let You Make Friends Quickly
  • Winding road through autumn and winter landscape with timeline icons for Nov 28, Direct Deposit, and Jan 13. 12 Dates Between Now and January 13 Every Social Security Recipient Should Know
  • A woman in a tan coat carries a tote bag of groceries along a sunny city sidewalk outside an apartment building. 15 US Cities Where Rent Now Tops $2,000 a Month
  • Illustration of an older woman on a garden bench with a laptop, beside drawings of a globe, books, and headphones. 12 Side Gigs Retirees Can Run Entirely From a Laptop
  • People of various ages sit along a long outdoor dining table in a festive town street during sunset. 11 Retirement Towns Where Thanksgiving Feels Like a Community Event
  • Illustration of a woman guiding a senior citizen away from tangled red tape toward a sunlit stone archway. Social Security Number Stolen? A New Law Could Get You Help Faster
  • Smiling older couple carrying a potted tree toward their suburban home with a moving truck parked behind them. 20 of the Best Towns to Retire in 2027

Newsletter

Get retirement tips and senior living advice delivered to your inbox.

Related Articles

Tax Refund

New Court Ruling Could Mean IRS Refunds for Pandemic Tax Penalties (2020–2023)

A recent court decision may open the door for certain taxpayers to recover IRS penalties…

Read More →

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

Stepping into retirement is a wonderful milestone, one you’ve worked hard to reach. But it…

Read More →
401k Loan

401k Loans: Are They REALLY Worth It?

Have you been considering a 401k loan? Saving for retirement has never been easier through…

Read More →
Why Two Retirees With the Same Salary Can Get Very Different Checks

Why Two Retirees With the Same Salary Can Get Very Different Checks

Discover why two retirees earning identical salaries end up with vastly different Social Security checks,…

Read More →
A retired couple reviews financial papers at a sunlit kitchen table, planning their budget.

Retirees, Take Note: 4 Recent Social Security Changes You Can’t Afford to Miss

Discover the 4 key Social Security changes in 2026, including the 2.8% COLA bump, updated…

Read More →
An older American couple sits on a sunlit European balcony overlooking the sea, planning their retirement journey together.

7 Social Security Rules That Change If You Live Abroad

Learn the 7 critical Social Security rules that change when you live abroad, including the…

Read More →
retirement income tax state, retirement distributions

7 States That Don’t Tax Your Pension, 401(k), Social Security, and More

For retirees, every single cent counts, and that’s why we can all agree that when…

Read More →
7 Signs You Should Appeal a Social Security Decision

7 Signs You Should Appeal a Social Security Decision

Discover the 7 signs you should appeal a Social Security decision, avoid common errors, and…

Read More →
A retired couple laughs together at an outdoor cafe in Mexico, basking in warm golden hour light.

What Happens to Your Social Security If You Move Abroad

Learn how moving abroad affects your Social Security benefits, taxation rules, payment restrictions, and mandatory…

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

Trust & Legal

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

Categories

  • Enjoying Retirement
  • Personal Finance
  • Saving & Spending

© 2026 Retired in USA. All rights reserved.