Medical Expenses Floor

That is medical expenses above 7 5 of your adjusted gross income can count toward the deduction instead of the 10 floor that was scheduled.

Medical expenses floor. Medical expenses include dental expenses and in this publication the term medical expenses is often used to refer to medical and dental expenses. You can deduct on schedule a form 1040 or 1040 sr only the part of your medical and dental expenses that is more than 7 5 of your adjusted gross income agi. It dropped the threshold back to 7 5 for 2017 and 2018. After president trump officially signed tax reform into law the floor for medical expense deductions went down to pre affordable care act aca levels for 2017 and 2018.

Under the tcja the medical expense deduction remains in place but there s a catch. The medical expense deduction floor changed for 2018. How do medical tax deductions work. M is for medical expenses.

Medical tax deductions don t work like other tax deductions. Blackwater images e getty images. Medical expenses medical expenses are deductible but most taxpayers do not realize a tax savings. The good news is the irs does allow you to have some relief from medical expenses with a medical tax deduction.

The tax cuts and jobs acts tcja preserved the deduction for medical expenses and changes the floor to 7 5 in 2017 and 2018. The 7 5 floor is back in place for the tax years 2017 and 2018. Medical expenses can damage your budget tremendously especially when the emergency is unexpected and your insurance does not cover it. You could claim the deduction for medical expenses that exceeded just 7 5 of your agi in these years.

The threshold for deductible medical expenses was supposed to remain at 10 in 2016 but the tax cuts and jobs act tcja tweaked that in a favorable way. For 2019 and 2020 tax returns the medical expense deduction floor remains at 7 5 due to an extension by the taxpayer certainty and disaster tax relief act. What will the medical expense deduction be in 2019 and 2020. This is because there is a floor that must be reached before any medical expenses are included in your itemized deductions which would then lower your income and income tax.

For 2019 the floor is 10 of your adjusted gross income agi.