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Your email address will not be published.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

  • Senior woman browsing fresh flowers at an outdoor street market with striped vendor tents and shoppers. Top 7 Retirement Destinations for Independent Seniors
  • Seniors walk along a landscaped stone courtyard outside a modern multi-story residential building near a water fountain. 10 Signs You’ve Found a Retirement Community Worth Joining
  • Man standing by a curbside mailbox opening an Annual Notice of Change envelope on an autumn suburban street. 8 Things to Do the Week Medicare Open Enrollment Opens
  • Man kneeling in a suburban front yard planting autumn flowers in a garden bed beside a brick home. 12 Cities With Retirement Homes Under $250,000
  • Illustration of a torn umbrella shielding a hospital and clinic while rain falls on dental, vision, and hearing items. 9 Things Original Medicare Doesn't Cover
  • Illustration split between busy city commuters on the left and a retired couple hiking along a sunny coastline on the right. 10 Spending Categories Where Retirees Say They Saved the Most
  • Senior man in an apron repairing a bicycle wheel mounted on a stand inside a sunlit workshop. 9 Ways Retirees Use Part-Time Income to Delay Withdrawals
  • Screenprint illustration of a small town square with a clock tower and gazebo, flanked by a beach and green mountains. 10 Cities Where $2,500 a Month Still Covers Everything
  • Older couple holding a large golden key to a stone archway overlooking a scenic coastal landscape. 10 Questions Couples Should Answer Before Filing Joint Retiree Taxes
  • Illustration of October, November, and December calendar pages floating toward a pocket watch above a bank vault. 8 Retirement Account Deadlines Hiding in the Last Quarter

Newsletter

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

Related Articles

An ink and watercolor illustration of a winding path with signs for Age 62, Age 67, and Age 70, symbolizing retirement decisions.

9 Social Security Mistakes That Are Hard to Reverse

Learn 9 critical Social Security claiming mistakes that are hard or impossible to reverse, and…

Read More →
Tax Refund

7 Ways to Maximize Your Tax Refund in 2023

The earliest you can file your 2022 income tax return is late January, but even…

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 →
part-time gig

10 Great Part-Time Gigs For Retirees (Available Now!)

Are You Looking For A Part-Time Gig? Your retirement should be the time when you…

Read More →
A warm gouache illustration of an older couple looking at a creative tax map towards a golden nest egg.

9 Deductions Retirees Commonly Miss When Filing

Discover 9 commonly overlooked retiree tax deductions for 2025-2026, including senior standard deduction boosts, Medicare…

Read More →
A mature freelance electrician in a sunlit workshop, looking thoughtfully toward a window during a work break.

Trump IRAs Explained: 7 Things to Know Before They Launch in 2027

TrumpIRA.gov launches January 1, 2027 with a $1,000 government match. Here are 7 things retirees…

Read More →
A relaxed retired couple reviewing their financial plan on a laptop in a bright home office.

How to Avoid the Medicare IRMAA Surcharge (Income-Related Premium)

Learn exactly how the Medicare IRMAA surcharge is calculated, view the 2026 income brackets, and…

Read More →
A senior couple smiling while looking at a tablet on a sunlit porch.

9 States That Still Tax Social Security – and One Dropping the Tax in 2026

Discover the 9 states that still tax Social Security benefits in 2026 and the one…

Read More →
Senior man in a visor holding a clipboard and pencil on a sunny golf course surrounded by palm trees.

Top 5 Jobs For Seniors in Florida

Explore the top 5 part-time jobs for seniors in Florida, featuring wage data, lifestyle perks,…

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.