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If you paid for healthcare expenses in the past year, you may be able to claim them on your tax return. The IRS allows certain deductions and credits that can help reduce what you owe—or even boost your refund. Here are three key tax breaks to consider for your 2025 tax return (filed in 2026):
Health Savings Accounts (HSAs)
A Health Savings Account (HSA) is a powerful tool that allows you to set aside money for qualified medical expenses. To qualify, you must be enrolled in a high-deductible health plan (HDHP).
For 2025, you can contribute up to $4,300 for individual coverage. If you’re age 55 or older, you can contribute an additional $1,000 (as long as you are not enrolled in Medicare). For family coverage, the contribution limit increases to $8,550.
You have until the tax filing deadline to make contributions for the prior year. One major advantage of an HSA is that unused funds roll over each year—you don’t lose the money if you don’t spend it.
Premium Tax Credit
If you purchased health insurance through the Marketplace, you may qualify for the Premium Tax Credit. This credit helps lower your monthly premiums or provides a benefit when you file your tax return.
The amount of the credit is based on your income and family size. You can use tools available on the Marketplace website to estimate your eligibility and potential savings.
Self-Employed Health Insurance Deduction
If you are self-employed and pay for your own health insurance, you may be able to deduct up to 100% of your premiums. This includes medical, dental, and qualified long-term care insurance for you, your spouse, and your dependents.
This deduction is taken as an adjustment to income on Schedule 1 of Form 1040, which means you can benefit even if you don’t itemize deductions.
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