Approximately 12% of adults in the United States take GLP-1 drugs like Ozempic, Mounjaro, Zepbound, or Wegovy, as per the 2025 KFF Health Tracking poll. These medications are popular but come with a hefty price tag, costing more than $1,000 per month for those paying out of pocket. Even with insurance, monthly costs can still reach several hundred dollars.
One potential way to offset these expenses is by deducting GLP-1s as a medical expense on your taxes, depending on the reason for their prescription. However, this deduction may not necessarily reduce your tax bill. Here’s why.
To begin with, you can only deduct medical expenses if you itemize your deductions rather than opting for the standard deduction. The standard deduction for 2025 is $15,750 for single filers and $31,500 for married joint filers, increasing to $16,100 and $32,200 respectively in 2026. Additionally, the medical expense deduction applies only to costs above 7.5% of your adjusted gross income (AGI).
The Internal Revenue Service (IRS) considers GLP-1 medications tax deductible if they are prescribed by a medical professional to diagnose, cure, mitigate, treat, or prevent a disease. For instance, if a doctor prescribes a GLP-1 for type 2 diabetes or obesity, these expenses may be deductible if itemizing and exceeding the 7.5% AGI threshold.
However, medications solely for weight loss without a medical diagnosis are not tax deductible. While GLP-1 prescriptions obtained through telehealth services may fall into a gray area, it’s essential to establish a clear medical necessity for the deduction.
It’s crucial to note that only unreimbursed medical expenses can be deducted. If insurance or a patient assistance program covers part of the medication cost, only the out-of-pocket expenses are deductible.
Furthermore, utilizing a health savings account (HSA) or flexible spending account (FSA) for weight-loss medications may be possible if prescribed to treat a specific disease. Contributions to these accounts are tax-free, and withdrawals for qualified medical expenses are also tax-free.
In conclusion, while deducting GLP-1 medications as a medical expense on your taxes is feasible under specific conditions, it’s essential to meet the IRS criteria for qualified medical expenses. By understanding the regulations and leveraging tax-advantaged accounts, individuals can potentially alleviate the financial burden of expensive medications.
