I've been doing my taxes using FreeTaxUSA through the IRS website, and I saw that the portion of medical expenses above 7.5% of AGI is deductible on Schedule A. I thought that had gone up to 10%.
Out of curiosity, am I just remembering wrong, or did later legislation lower it back to 7.5%? And what will the threshold be for medical expenses in 2023?
It was raised to 10% with ACA, lowered temporarily to 7.5% by the Tax Cuts and Jobs Act of 2017, and was lowered "permanently" to 7.5% by the Consolidated Appropriations Act of 2021.
Ira Smilovitz, EA Leonia, NJ
According to current IRS Publication 502 for 2022 returns:
"You can deduct on Schedule A (Form 1040) only the part of your medical and dental expenses that is more than 7.5% of your adjusted gross income (AGI).
This publication also explains how to treat impairment-related work expenses and health insurance premiums if you are self-employed."
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Thanks, Ira! That's exactly what I was looking for.
Your memory is quite good.
This article written in 2018 without considering the 2017 act has the historic thresholds.
https://deductions.tax/medical-expense-deduction-agi-threshold-2019/ It was supposed to be raised to 10% for 2019 before the passage of the
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