Posted by: DeAnna Alger, CPA
Currently, for those taxpayers under the age of 65, an itemized deduction can be taken for medical expenses that exceed 10% of their adjusted gross income (AGI). For anyone age 65 or older, the old 7.5% AGI limit is still in place. However, this is only temporary.
Beginning on January 1, 2017, the 10% threshold will apply to all taxpayers, despite their age. Regardless of what type of health coverage a taxpayer has, oftentimes they aren’t able to take advantage of the medical expense deduction because the 10%, or even 7.5%, AGI threshold is too high.
Unfortunately, the trends in current health care plans include things such as increased copays, reduced drug benefits, and increases in premiums being paid by employees. Consequently, taxpayers are currently paying much more in healthcare than they have in the past. In the near future, it is likely that more individuals will be able to take advantage of the medical expense deduction.
Learn more about the medical expense deduction here.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.
