How Much Can You Deduct? You can deduct only the amount of your medical and dental expensesthat is more than 7.5% of your adjusted gross income (line34, Form 1040). In this publication, the term "7.5% limit"is used to refer to 7.5% of youradjusted gross income. The phrase "subject to the 7.5% limit" isalso used. This phrase means that you must subtract 7.5% (.075) ofyour adjusted gross income from your medical expenses to figure yourmedical expense deduction. Example.Your adjusted gross income is $20,000, 7.5% of which is $1,500. Youpaid medical expenses of $800. You cannot deduct any of your medicalexpenses because they are not more than 7.5% of your adjusted grossincome. Separate returns.If you and your spouse live in a noncommunity property state andfile separate returns, each of you can include only the medicalexpenses each actually paid. Any medical expenses paid out of a jointchecking account in which you and your spouse have the same interestare considered to have been paid equally by each of you, unless youcan show otherwise. Community property states.If you and your spouse live in a community property state and fileseparate returns, any medical expenses paid out of community funds aredivided equally. Each of you should include half the expenses. Ifmedical expenses are paid out of the separate funds of one spouse,only the spouse who paid the medical expenses can include them. If youlive in a community property state, are married, and file a separatereturn, see Publication 555, Community Property.