Itemized medical expenses deduction

[mrvee]

I turned 65 in 2024, my wife was 61.

Filing jointly

My AGI was 155k and my medical expenses were $24,288, which is 15.67%. Turbo tax Deluxe says that my Standard Deduction is better for me. Since the threshold is 7.5% for me, how is the Standard Deduction better?

[Bsch4477]

You have to compare your total itemized deductions on Sch A with your standard deduction. You will probably find your standard deduction is greater. 

[VolvoGirl · Accepted solution]

The Standard Deduction for Joint with 1 person 65 is 30,750.  Joint 29,200 + 1,550 for each 65 and over or blind (30,750/32,300).

If your AGI is 155,000 you can only deduct the medical over 7.5% of your AGI which is 11,625.  So  24,288 - 11,625 = 12,663 Medical Deduction.  THEN all your itemized deductions have to be more than the standard deduction of 30,750  to get any benefit (so you would only be getting the benefit of the amount that puts you over the standard deduction). And since the Standard Deduction is increased more people will not need to Itemize.

[KrisD15]

The Standard Deduction for Married Filing Joint with one senior is 30,750.

Deciding between taking the Standard Deduction (in your case 30,750) or Itemizing Deductions is based on which one is more, it has nothing to do with the percentage over your AGI the medical expenses need to be in order to claim them on Schedule A if you are Itemizing. 

HERE is a link with more information 

@mrvee 

[mrvee]

That makes sense. Thank you.

[xmasbaby0]

The amount of your medical expenses that are OVER 7.5% of your AGI is only $12,663, which is less than the standard deduction for  joint return for a married couple with one spouse 65 or older .  Your standard deduction is $30,750.   Do you also have some other itemized deductions like mortgage interest, property tax, charity donations...??? that add up to exceed your standard deduction?

Your AGI was $155,000    7.5% of that is $11,625   Take your total medical expenses of $24,288 and subtract the 

$11,625.   That leaves a medical expense deduction of $12,663 that can go on your Schedule A with other itemized deductions.

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2024—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY            $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

[mrvee]

Thank you.