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September 2026

Is Zepbound Tax Deductible? Wegovy, Compounded GLP-1s and the 7.5% Floor

Zepbound, Wegovy and a compounded GLP-1 can count as medical expenses when prescribed to treat diagnosed obesity or another disease. What the IRS counts, the 7.5% of AGI floor, why you must itemize, and what cannot be counted twice.

ByDerek MossPricing analystPublished

Zepbound can be tax deductible. The limits are tight. The IRS counts prescribed medicines as medical expenses[1]. Weight-loss costs count only when they treat a disease a physician diagnosed[1]. The IRS names obesity, hypertension and heart disease[1]. Then comes the floor. You can deduct only the part of your medical expenses above 7.5% of your adjusted gross income[1].

None of the IRS documents cited here names Zepbound, Wegovy or any GLP-1. They set general rules. The rest of this page applies them, one line of the bill at a time. What a month of Zepbound costs is in Zepbound price.

Test one: the drug is prescribed

A prescribed drug, in the IRS’s words, is one that “requires a prescription by a doctor for its use by an individual”[1]. Apart from insulin, a drug that is not prescribed is not a medical expense[1]. Zepbound and Wegovy are prescription drugs, so they clear this test when you fill them on a prescription.

Compounded semaglutide and compounded tirzepatide are dispensed by a pharmacy on a prescription. The IRS text asks whether the drug is prescribed. It says nothing about compounding either way.

Test two: it treats a diagnosed disease

A prescription alone is not enough. Medical expenses must be primarily to alleviate or prevent a physical or mental disability or illness[1]. They do not include costs that are merely beneficial to general health[1].

For weight loss the IRS is specific. Costs to lose weight count only if the weight loss treats a specific disease a physician diagnosed[1]. The IRS gives obesity, hypertension and heart disease as examples[1]. Its wellness FAQ applies the same test to weight-loss programs, naming obesity, diabetes, hypertension and heart disease[2].

Obesity itself qualifies. Rev. Rul. 2002-19 states that obesity “is medically accepted to be a disease in its own right”[4]. In that ruling, a taxpayer diagnosed with obesity could deduct a weight-loss program as treatment for it[4]. So could a second taxpayer without obesity, whose program treated diagnosed hypertension[4].

What the IRS texts say about the pieces of a GLP-1 bill
CostWhat the IRS text saysWhere it sits
Prescribed drug to treat diagnosed obesity or another diseasePrescribed medicines are includible; obesity is a diseaseCounts toward the total
Same drug taken for appearance or general healthWeight-loss costs for appearance or well-being are excludedDoes not count
Amount an insurer or other source paid backReduce your total by all reimbursementsDoes not count
Amount paid from an HSA, or fully reimbursed by an FSACannot also be included as a medical expenseDoes not count
Drug imported without FDA approvalListed among expenses you cannot deductDoes not count
What the IRS texts say about the pieces of a GLP-1 bill. IRS Publication 502 (2025); IRS nutrition and wellness FAQ; 2025 Schedule A instructions; Rev. Rul. 2002-19.

The 7.5% floor, in one line

The deduction is the year’s unreimbursed medical expenses minus 7.5% of AGI[1][3]. The floor applies to your total, not to each drug. At an AGI of $80,000, the floor is $6,000. The first $6,000 of the year’s medical costs deducts nothing.

The 7.5% floor at an illustrative AGI of $80,000
Unreimbursed medical expenses for the yearFloor (7.5% of AGI)Amount above the floor
$6,000$6,000$0
$9,000$6,000$3,000
$12,000$6,000$6,000
The 7.5% floor at an illustrative AGI of $80,000. Arithmetic on the rule in IRS Publication 502 (2025) and the 2025 Schedule A instructions. The amount above the floor helps only if you itemize. Illustrative figures, not a typical household.

Every qualifying cost counts: other prescriptions, doctor visits, lab work, and premiums paid with after-tax money[1][3]. A GLP-1 alone may fall short of the floor. Stacked with the rest of a year’s care, it may not.

Itemizing comes before the floor

The medical deduction lives on Schedule A, which is for itemized deductions[3]. The instructions compare two totals: your itemized deductions and your standard deduction[3]. Taking the larger one usually means less federal income tax[3]. If the standard deduction is larger, the amount above the floor does not change your tax.

So the full test runs in order. The drug is prescribed. It treats a diagnosed disease. The year’s total clears 7.5% of AGI. Your itemized deductions beat the standard deduction.

What you cannot count twice

You must reduce your medical expenses by every reimbursement from insurance or other sources during the year[1]. You can include only the expenses you paid this year[1].

Tax-favored accounts are the common trap. You cannot include expenses paid with a tax-free HSA distribution[1]. You cannot include amounts fully reimbursed by an FSA funded with pre-tax pay[1]. The IRS FAQ says it plainly. An amount paid or reimbursed by an HSA, FSA, Archer MSA or HRA cannot also be deducted[2]. Which account can pay for a GLP-1 is covered in can you use an HSA for peptides.

Timing: the year of the charge

The date you pay decides the year. For a check, it is generally the day you mail or deliver it[1]. For a credit card, it is the year of the charge, not of the card payment[1]. You generally cannot include payments for care you will receive in a future year[1]. A December prepay for next year’s supply may not count this year.

Imported and unapproved drugs

Generally you cannot include a prescribed drug brought in or shipped from another country[1]. The exception is a drug imported legally, such as one FDA announces individuals may import[1]. The Schedule A instructions list “Imported drugs not approved by the U.S. Food and Drug Administration” among expenses you cannot deduct[3]. That includes foreign-made versions of U.S.-approved drugs made without FDA approval[3].

The records that carry the claim

Keep three things together for each fill. The prescription. The diagnosis it treats. The receipt showing what you paid and when. If a bill bundles the drug with a membership or shipping, ask for an itemized receipt. Sales tax on the order is a separate question, covered in sales tax on compounded semaglutide. The full monthly cost of each GLP-1 route is in GLP-1 cost without insurance.

FAQ

5 questions

Is Zepbound tax deductible?

It can be. A prescribed drug that treats a diagnosed disease, such as obesity, is a medical expense. Only costs above 7.5% of AGI are deductible. And only if you itemize on Schedule A.

Is Wegovy tax deductible?

The same rules apply. The IRS publications name no GLP-1. They count prescribed drugs that treat a diagnosed disease. The 7.5% floor and itemizing still apply.

Are weight loss drugs tax deductible if I just want to lose weight?

No. The IRS excludes weight-loss costs for appearance, general health or well-being. The weight loss must treat a disease a physician diagnosed, such as obesity.

Can I deduct a GLP-1 I paid for with my HSA or FSA?

No. Expenses paid with a tax-free HSA distribution cannot also be included. Nor can amounts fully reimbursed by an FSA funded with pre-tax pay.

Is compounded semaglutide tax deductible?

The IRS asks whether the drug is prescribed and treats a diagnosed disease. Its texts say nothing about compounding either way. A drug imported without FDA approval cannot be deducted.

Sources

4 cited
  1. [1]Internal Revenue Service (2025). Publication 502: Medical and Dental Expenses (for use in preparing 2025 returns) IRS. Source
  2. [2]Internal Revenue Service (2026). FAQs about medical expenses related to nutrition, wellness, and general health IRS. Source
  3. [3]Internal Revenue Service (2025). 2025 Instructions for Schedule A (Form 1040): Itemized Deductions IRS. Source
  4. [4]Internal Revenue Service (2002). Rev. Rul. 2002-19: Medical expenses, weight-loss program as treatment for a disease (including obesity) Internal Revenue Bulletin 2002-16. Source

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