| AGI Threshold for Deduction | 7.5% of Adjusted Gross Income |
| 2024 FSA Limit | $3,200 |
| 2024 HSA Limit (Individual) | $4,150 |
| 2024 HSA Limit (Family) | $8,300 |
| Medical Mileage Rate 2024 | $0.21 per mile |
| Schedule Required | Schedule A, Form 1040 |
Key Takeaways
- Diabetes supplies are IRS-deductible as medical expenses if costs exceed 7.5% of AGI.
- Insulin, CGMs, test strips, and pumps all qualify.
- FSA/HSA purchases are pre-tax and not subject to the AGI threshold.
- Keep all receipts and prescriptions for documentation.
What Qualifies as a Deductible Diabetes Expense?
The IRS allows taxpayers to deduct unreimbursed medical expenses that exceed 7.5% of their adjusted gross income (AGI). For people with diabetes, a wide range of supplies and services qualifies under IRS Publication 502.
Qualifying Supplies
- Insulin and injectable medications
- Blood glucose meters and test strips
- Continuous glucose monitors (CGMs) and sensors
- Insulin pumps and pump supplies
- Lancets and lancing devices
- Syringes and pen needles
- Diabetic wound care products
Qualifying Services
- Endocrinologist and physician visits
- Diabetes education programs (DSMES)
- Lab tests (A1C, cholesterol, kidney panels)
- Prescription costs
FSA and HSA: The Smarter Tax Strategy
Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) offer a more accessible tax benefit β every dollar spent is pre-tax, regardless of your AGI. There is no 7.5% threshold to meet.
| Account Type | 2024 Contribution Limit | Rollover |
|---|---|---|
| FSA | $3,200 | Limited ($640) |
| HSA (individual) | $4,150 | Unlimited |
| HSA (family) | $8,300 | Unlimited |
MDS Diabetes supplies β including test strips, CGM sensors, and pen needles β are FSA/HSA eligible, making them a smart purchase to stretch your healthcare dollars further.
How to Claim the Deduction
To claim diabetes-related medical deductions on your federal return, you must itemize deductions using Schedule A (Form 1040). Compare your itemized total against the standard deduction ($14,600 single / $29,200 married filing jointly in 2024) to confirm itemizing benefits you.
Step-by-Step
- Collect all receipts for diabetes supplies and services
- Total unreimbursed expenses for the year
- Subtract 7.5% of your AGI from the total
- Deduct the remaining amount on Schedule A
Common Mistakes to Avoid
- Deducting expenses reimbursed by insurance or FSA/HSA
- Forgetting over-the-counter items like lancets and glucose tablets
- Missing receipts β always save documentation
- Not including mileage to medical appointments ($0.21/mile in 2024)
Actionable Tips
Order diabetes supplies from MDS Diabetes using your FSA or HSA card for instant pre-tax savings on every purchase. Stock up before year-end to maximize FSA use-it-or-lose-it balances. Consider a dedicated folder or app to track all diabetes-related spending throughout the year.