Medical Deductions - 7 1/2 % vs 10%

Yes, part of the new health care act. Starting in 2013 only the amount above 10% of your AGI will be deductible. Under AMT it is my opinion that only the amount above 12.5% of your AGI is deductible (currently only the amount above 10% of your AGI is deductible), as

2.5% of your AGI of medical expenses are not allowed under AMT. However, if you are 65 or older, then you can still keep the 7.5% limit until 2016 (and 10% for AGI).

Other medical tax deductibility is decreasing too: FSA (work medical accounts) ceiling will be cut in half in 2013. So do that expensive dental work or plastic surgery in the next years then.

And in 2011 you cannot use FSA to pay for OTC medicines. Maybe if you have a doctors prescription for nutritional supplements for a specific ailment then it is allowed; I haven't read the rules enough to say.