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
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Your email address will not be published.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 *

Search

Latest Posts

  • A senior man calmly checks his continuous glucose monitor at a sunlit kitchen table next to a cup of coffee and breakfast. New Diabetes Forecast: 3 Blood Sugar Guidelines Changing This Month
  • Illustration of a retired couple looking at a calendar and a compounding growth chart labeled COLA Base. 6 Ways to Boost Your Next COLA Check
  • An older couple sitting on a sunny wooden deck of an affordable home, enjoying coffee and looking out at a peaceful green yard. 8 States Where Your COLA Check Goes Twice as Far
  • A warm gouache and ink illustration of a cozy craftsman cottage nestled in a scenic mountain valley under a soft morning sky. 10 US States Where a $2,000 Social Security Check Covers Rent
  • An older couple reviewing estate planning documents together at a warm kitchen table. 10 Things Retirees Should Remove From Their Wills Immediately
  • A New Yorker-style editorial illustration of a retired couple on a split bench, balanced between heavy savings and floating travel balloons. What Retired Couples Fight About Most Financially - and What It Costs Them
  • Watercolor and ink illustration of small golden coins slipping out of a tiny tear in a leather wallet, representing silent budget leaks. 6 Signs You’re Losing Money Every Month - and How to Find the Leaks
  • An unposed, warm photograph of a retired couple relaxing on a wooden deck by a misty lake in the morning light. You Could Spend 30 Years Retired With Literally No Paycheck, Because These 4 ETFs Pay You Every Month
  • An older couple in a warm kitchen looking over retirement figures on a tablet and notebook during a sunny morning. The 2027 Medicare Part B Premium Projected at $209.50: How to Prepare for the New Deduction
  • An older woman looking out of a window at a foggy, dark forest, representing the hidden risks of scenic retirement spots. America's Unsafest States for Retirees

Newsletter

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

Related Articles

An older woman in a cozy cream cardigan sits by a window with a warm mug, looking thoughtfully out at her morning garden.

Social Security Survivor Benefits: What Every Retiree Should Know

Discover the 2026 rules for Social Security survivor benefits, from earnings limits and remarriage clauses…

Read More →
tax changes

Shocking New Tax Changes Coming Up This Year

Hands hold a 2024 planner and pen, ready to navigate upcoming tax changes for a…

Read More →
Ink and watercolor illustration of a balance scale holding a warm coffee mug on one side and a vintage travel suitcase on the other.

8 Jobs That Let Retirees Set Their Own Schedule

Discover eight flexible part-time jobs for retirees that offer supplemental income on your own schedule,…

Read More →
states, social security

10 States Where You Can Get the Most Social Security

5. New Jersey New Jersey is at the top of the list when it comes…

Read More →
veteran

How to Find The Perfect Side Gig as a Veteran

Being a veteran is not always easy, especially when it’s time for retirement and you…

Read More →
401k Loan

401k Loans: Are They REALLY Worth It?

Benefit: Retirement Savings Can Benefit As you begin to make the repayments on your loan…

Read More →
housing withdrawing money from your retirement account

5 Tips You Need to Know When Withdrawing Money from Your Retirement Account

Since you’ve become a part of the workforce, all that you heard was accumulate, accumulate,…

Read More →
cheap

NEW: 5 Cheapest States for Retirees This Year

Mississippi Mississippi wins against Arkansas when it comes to the average cost of owning a…

Read More →
A senior couple looking at a tablet in a bright kitchen with a focused expression.

HSAs Sound Great – Until You See These 3 Hidden Costs

HSAs offer triple tax benefits, but hidden costs can derail your savings. Learn about 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

Trust & Legal

  • 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

© 2026 Retired in USA. All rights reserved.