Medical expenses

[rrsheriff1]

I took the standard deduction but New Mexico lets you deduct medical expenses up to 2800 if you're over 65.  Why won't Turbotax let me do that? 

[Bsch4477]

Would that deduction result in a greater itemized deduction than the standard deduction for your state?

[rrsheriff1]

I don't think so

[JohnW152]

If you're eligible for this tax benefit and you've entered your information correctly in TurboTax, you may be looking in the wrong place on your return.  You wouldn't be seeing this as a deduction, but as a refundable credit on your state return.

A refundable tax credit is treated as a payment of tax you made during the year.  When your total of refundable credits is larger than the tax you owe, the government sends you a tax refund for the difference.

According to the Instructions for New Mexico Form 2023 PIT-RC:

If you or your spouse are 65 years of age or older, and you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year 2023, you may claim a tax credit of $2,800. The medical care expenses can be for the care of any combination of you, your spouse, or dependents.

The credit is claimed on line 23 of Form PIT-RC, then carried over to Form PIT-1, line 24. 

@rrsheriff1

[rrsheriff1]

It didn't even allow me to enter any medical expenses 

[Bsch4477]

Were your unreimbursed medical expenses greater than $28,000?