Quick Answer
Yes, insulin and diabetes supplies are fully deductible as medical expenses if you itemize and your total medical expenses exceed 7.5% of your adjusted gross income. For someone earning $60,000, you'd need more than $4,500 in medical expenses to qualify.
Best Answer
Robert Kim, Tax Return Analyst
Best for people managing diabetes or other chronic conditions with ongoing medical expenses
What diabetes supplies are deductible?
All insulin and diabetes supplies prescribed by a doctor are fully deductible medical expenses under IRS rules. According to IRS Publication 502, this includes insulin (even over-the-counter), test strips, glucose monitors, lancets, syringes, insulin pens, and continuous glucose monitors (CGMs).
How the 7.5% threshold works
You can only deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI). Here's how it works:
Example: Annual diabetes costs
Let's say you earn $65,000 and have these annual diabetes expenses:
Your 7.5% threshold is $4,875 ($65,000 × 0.075). You can deduct $1,205 ($6,080 - $4,875).
Additional deductible diabetes expenses
Record-keeping requirements
Keep receipts for all purchases and a log showing:
What you should do
1. Track all expenses: Use a spreadsheet or app to log every diabetes-related cost
2. Get prescriptions: Ensure your doctor prescribes insulin and supplies in writing
3. Calculate your threshold: Multiply your AGI by 0.075
4. Consider timing: If you're close to the threshold, consider bunching medical expenses into one tax year
Use our return scanner to check if you've missed any medical deductions on previous returns — you can amend returns up to 3 years back.
Key takeaway: All insulin and diabetes supplies are deductible, but you need total medical expenses above 7.5% of your income. For a $60,000 earner, that's $4,500+ in expenses.
*Sources: [IRS Publication 502](https://www.irs.gov/pub/irs-pdf/p502.pdf), [IRS Revenue Ruling 2002-19](https://www.irs.gov/irb/2002-15_IRB#RR-2002-19)*
Key Takeaway: All diabetes supplies are deductible, but you need total medical expenses exceeding 7.5% of your AGI to benefit.
Medical expense thresholds by income level for diabetes deduction eligibility
| Annual Income (AGI) | 7.5% Threshold | Monthly Medical Expenses Needed | Potential Annual Tax Savings* |
|---|---|---|---|
| $30,000 | $2,250 | $188 | $270-$450 |
| $50,000 | $3,750 | $313 | $450-$825 |
| $70,000 | $5,250 | $438 | $630-$1,155 |
| $90,000 | $6,750 | $563 | $810-$1,485 |
More Perspectives
Diana Flores, Tax Credits & Amendments Specialist
Best for families managing diabetes care for multiple family members or dealing with other significant medical expenses
Combining family medical expenses
When multiple family members have medical expenses, you can combine them all to reach the 7.5% threshold faster. If your child has Type 1 diabetes and you have other family medical costs, every dollar counts toward the deduction.
Example: Family with diabetic child
Family AGI: $85,000 (threshold: $6,375)
Annual expenses:
Deductible amount: $2,925 ($9,300 - $6,375)
Strategic timing for families
If you're close to the threshold, consider:
Don't forget these family medical expenses
Key takeaway: Families can combine all members' medical expenses to reach the 7.5% threshold, making diabetes supplies more likely to be deductible.
Key Takeaway: Families can combine all members' medical expenses, making it easier to exceed the 7.5% threshold and deduct diabetes supplies.
Robert Kim, Tax Return Analyst
Best for retirees and seniors who often have lower income and higher medical expenses, making deductions more valuable
Why seniors benefit most from medical deductions
Retirees often have the perfect combination for medical deductions: lower income (easier to exceed 7.5% threshold) and higher medical expenses. If you're on Social Security and have diabetes, you're likely to benefit.
Example: Retiree with diabetes
Retired couple, AGI: $35,000 (threshold: $2,625)
Annual medical expenses:
Deductible amount: $3,375 ($6,000 - $2,625)
Tax savings: ~$405 (12% bracket)
Medicare and diabetes supplies
Medicare Part B covers some diabetes supplies, but you still pay 20% coinsurance. That 20% is deductible, plus any supplies Medicare doesn't cover:
Additional senior medical deductions
Key takeaway: Seniors with lower incomes often exceed the 7.5% threshold easily, making diabetes supply deductions highly valuable for tax savings.
Key Takeaway: Seniors with fixed incomes often exceed the 7.5% medical expense threshold, making diabetes supply deductions particularly valuable.
Sources
- IRS Publication 502 — Medical and Dental Expenses
- IRS Revenue Ruling 2002-19 — Deductibility of insulin and diabetes supplies
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.