Medical Deduction Threshold Climbs in 2013

Taxpayers thought it was difficult to find enough medical deductions to meet the 7.5% floor on Sch A so they could deduct their medical in the past! It was a bad year when your medical expenses were greater than 7.5% of your income! And Sch A would only allow you to deduct the expenses greater than 7.5%, very difficult for people/families to meet. Well in 2013, it becomes even more impossible. IRS will only allow medical expenses that exceed 10% of AGI (adjusted gross income).

The one exception is for those 65. If at least one filer on a MFJ (married filed joint) return is 65 or older, the 7.5% cap still applies.

Those that can still deduct some medical on their state returns should check to see if their state is following the new federal rules.

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