Can Zepbound costs really be a tax deduction? We checked

What does this video actually claim?

@madisonsecretlibrary's TikTok suggests that Zepbound costs can be claimed as tax deductions or somehow generate money during tax season. The video's caption combines #zepbound with #taxseason and #money, implying a financial benefit.

The creator doesn't spell out exactly how this works, but the implication is clear: you can get money back on your Zepbound expenses. This kind of content has exploded on TikTok as GLP-1 medications like tirzepatide (Zepbound) cost $1,000+ monthly without insurance.

The video has racked up 244,400 views, suggesting people are hungry for ways to offset these costs.

Can you actually deduct prescription drug costs?

Yes, but there's a massive catch that the video doesn't mention. Prescription medications only qualify as tax-deductible medical expenses if your total medical costs exceed 7.5% of your adjusted gross income (AGI).

For someone making $60,000 annually, medical expenses would need to top $4,500 before any deduction kicks in. Even with Zepbound's $12,000+ annual cost, you'd only deduct the amount above that threshold.

The creator makes this sound like automatic money back. It's not. Most people never hit the 7.5% AGI threshold, making this advice useless for the majority of viewers.

What about Health Savings Accounts?

HSAs offer a better path than standard deductions, but again, it's not as simple as the video suggests. You can use HSA funds for prescription medications like Zepbound without the 7.5% AGI limitation.

However, you need a qualifying high-deductible health plan to contribute to an HSA. The 2024 contribution limit is $4,300 for individuals, which covers less than half of Zepbound's annual cost.

FSAs work similarly but with even lower contribution limits ($3,200 for 2024) and use-it-or-lose-it rules. These accounts help, but they're not the financial windfall the video implies.

What's the real cost situation with Zepbound?

Zepbound (tirzepatide) costs roughly $1,060 monthly without insurance. That's $12,720 annually for a medication that showed 22.5% average weight loss in the SURMOUNT-1 trial (Jastreboff et al., NEJM, 2022).

Eli Lilly offers a savings card that can reduce costs to $25-550 monthly for eligible patients, but this excludes government insurance plans. Most insurance plans don't cover Zepbound for weight loss, though some cover Mounjaro (same drug) for diabetes.

The financial reality is harsh: most people pay full price. Tax strategies help some people, but they're not the easy money-maker this video suggests.

What should you know about GLP-1 medication costs?

Don't count on tax deductions to make these medications affordable. The 7.5% AGI threshold eliminates most people from meaningful deductions, and the video oversells this strategy.

Better options include manufacturer savings programs, patient assistance programs, or shopping compounding pharmacies (though quality varies). Some telehealth platforms negotiate lower prices, though you'll still pay hundreds monthly.

If you're considering Zepbound, budget for $500-1,000 monthly out of pocket. The medication works (15mg tirzepatide produced 22.5% weight loss versus 2.4% for placebo in SURMOUNT-1), but the costs are real and ongoing.