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
2017 act.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.