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For example, younger persons who are still working probably arenât on Medicare and are still paying into the system by a rate of 6.2% of their annual earnings. Elderly persons on Medicare can use the IRS tax deduction to reduce their tax burden by claiming costs associated with Medicare payments.
Instead, you can only deduct the portion of your medical expenses in excess of 10 percent of your adjusted gross income, or AGI. For example, if you have an AGI of $60,000, the first $6,000 of your medical expenses isn't deductible. If you have $7,500 in medical expenses, you could only write off $1,500.he medical expenses deduction is an itemized deduction, which means you can't claim it unless you give up your standard deduction and itemize. Plus, the medical expenses deduction isn't a dollar-for-dollar deduction.