Are Braces Tax Deductible? Understanding Medical Expense Deductions for Orthodontics

Braces can be a costly investment, but they may also qualify for a tax deduction if they are medically necessary. To claim this deduction, your total medical expenses must exceed 7.5% of your adjusted gross income (AGI). This includes treatments for yourself, your spouse, or your dependents.

The IRS recognizes orthodontic care as a legitimate medical expense, meaning you can potentially deduct the cost of braces if they correct bite issues, prevent future dental problems, or address current health concerns. However, purely cosmetic treatments, like whitening, do not qualify.

To take advantage of this tax benefit, you’ll need to itemize deductions rather than taking the standard deduction. But here’s the catch—many taxpayers find that unless their total medical expenses are significant, itemizing may not provide a greater benefit than the standard deduction.

For a full breakdown of medical expenses that qualify, check out the IRS Publication 502.

💡 Did you know? Some dental insurance plans cover part of orthodontic costs, reducing your out-of-pocket expenses and potentially increasing your tax savings.

Key Takeaways

• Braces qualify for tax deductions when medically necessary and when total medical expenses exceed 7.5% of AGI.
• You must itemize deductions instead of taking the standard deduction to claim this benefit.
• Keeping detailed records of payments helps maximize potential tax savings.

Understanding Medical and Dental Expense Deductions

Many people assume medical expenses are automatically deductible, but that’s not the case. The IRS only allows deductions for medical and dental costs that exceed 7.5% of your AGI.

Qualifying Medical and Dental Expenses

To be deductible, medical costs must directly relate to the prevention or treatment of a physical or mental illness. Eligible expenses include:

• Orthodontic treatments (braces, retainers)
• Necessary dental procedures (fillings, extractions, dentures)
• Medical equipment and supplies
• Payments to healthcare professionals

Tip: If you’re unsure whether a treatment qualifies, ask your provider for a statement confirming its medical necessity.

For more information on the health benefits of orthodontic care, visit the American Association of Orthodontists (AAO).

How to Calculate Deductible Medical and Dental Expenses

If your medical expenses don’t exceed 7.5% of your AGI, they won’t be deductible. Here’s a simple way to check if you qualify:

Example Calculation

1. Determine your AGI (Line 11 on Form 1040)
2. Multiply your AGI by 7.5% (0.075)
3. Subtract that amount from your total medical expenses
4. The remainder is your deductible amount

Example: If your AGI is $60,000 and your medical expenses total $8,000:

• 7.5% of $60,000 = $4,500
• $8,000 – $4,500 = $3,500 deductible amount

Before deciding whether to itemize, compare your total itemized deductions against the standard deduction. Sometimes, the standard deduction offers greater tax savings.

Are Braces Tax Deductible?

Yes, but only if they’re medically necessary. The IRS considers orthodontic treatments like braces, retainers, and headgear valid medical expenses when they correct:

• Difficulty chewing or speaking
• Pain from jaw misalignment
• Bite issues that cause long-term dental problems

Both traditional braces and clear aligners (like Invisalign) qualify. Timing matters—you can only deduct expenses in the year they’re paid, not when treatment is completed.

If you’re getting Invisalign and wondering about discomfort, you may find these Invisalign pain relief tips helpful.

Overcoming the 7.5% AGI Threshold

Many taxpayers struggle to exceed the 7.5% AGI threshold. Here are a few strategies to maximize your deductions:

• Schedule treatments in the same year to bundle expenses and push total costs past the threshold.
• Bunch elective procedures—if you’re planning other medical treatments, try to complete them in the same tax year.
• Reduce AGI by contributing more to pre-tax retirement accounts (like a 401(k) or traditional IRA). Lower AGI means medical expenses take up a larger percentage of your income.

Thinking about long-term costs? Learn about how much retainers cost after braces so you can plan ahead for post-treatment expenses.

Alternative Tax-Saving Strategies: HSAs & FSAs

Instead of waiting to meet the AGI threshold, consider using a Health Savings Account (HSA) or Flexible Spending Account (FSA). These accounts let you pay for braces with pre-tax dollars, avoiding AGI limitations altogether.

To learn more about how HSAs can be used for orthodontic expenses, visit HealthCare.gov.

HSA Contribution Limits for 2025

Category	Contribution Limit
Individual	$4,300
Family	$8,550
Catch-up (age 55+)	Additional $1,000

Unlike FSAs, HSA funds roll over each year, allowing you to save for future orthodontic costs.

How Dental Insurance Affects Deductions

Only out-of-pocket expenses count toward tax deductions. If your insurance covers $2,000 of a $6,000 treatment, only the remaining $4,000 is deductible. Keep records of all payments and insurance statements to ensure accurate reporting.

Quiz: Test Your Knowledge

1. What percentage of AGI must medical expenses exceed to be deductible? a) 5%
   b) 7.5%
   c) 10%
   d) 15%
2. Which orthodontic expense is NOT tax-deductible? a) Braces for bite correction
   b) Retainers for medical necessity
   c) Teeth whitening
   d) Invisalign for jaw alignment
3. What is the standard deduction for married couples filing jointly in 2024?
   a) $13,850
   b) $29,200
   c) $30,000
   d) $25,900

Answers:

1. (b) 7.5%
2. (c) Teeth whitening
3. (b) $27,700

Final Thoughts: Take Action Now

Understanding orthodontic tax deductions can save you thousands—but only if you plan correctly. Before filing your taxes: ✅ Gather all receipts and insurance statements
✅ Determine whether itemizing beats the standard deduction
✅ Explore HSAs or FSAs for pre-tax savings

💡 Looking for an experienced orthodontist? Hulse Orthodontics offers expert guidance and treatment plans to help you achieve the perfect smile. Schedule a consultation today!