Medical expenses are deductible as an itemized deduction to
the extent they exceed 10% of adjusted gross income. For example, for a
taxpayer with an adjusted gross income of $50,000, the 10% threshold is $5,000.
Once medical expenses exceed the $5,000 threshold, the amount in excess of the
threshold is included as an itemized deduction. If the same taxpayer had $6,000
of medical expenses, then $1,000 of expenses are included as an itemized
deduction because $6,000 less the threshold of $5,000 leaves $1,000 of eligible
deductions. Another note, this threshold of 10% is increased from the prior
year where the threshold was 7.5%.
Labels: deductions, medical expenses