Taxpayers could deduct up to $5,000 in drug costs

Taxpayers could deduct up to $5,000 in qualifying prescription medication and pharmacy cost-sharing expenses from adjusted gross income. The deduction covers prescribed medications and pharmacy cost-sharing. The expenses must be unreimbursed and paid out of pocket. Amounts covered by tax-favored accounts, such as flexible spending or health savings accounts, do not count. Taxpayers could not deduct the same costs under another part of the tax law for the same tax year. The deduction would apply to tax years beginning on or after January 1, 2026.