Almost everything that as been said above about the itemized deduction for medical expenses is wrong. Let me try to clear up the confusion.
The amount that can actually be deducted is the amount of unreimbursed medical expenses in excess of 7.5% of AGI. For example, suppose AGI is $50,000 and total unreimbursed medical expenses are $10,000. 7.5% of $50,000 is $3,750, so the deduction is $10,000 - $3,750, which is $6,250. If total unreimbursed medical expenses are $3,750 or less, there is no deduction.
The 7.5% does NOT apply to the amount of medical expenses, it applies to AGI. And the deduction is NOT 7.5% of AGI, it's the amount by which the medical expenses exceed 7.5% of AGI.
As xmasbaby0 said, the deduction does not reduce the tax unless total itemized deductions are more than the standard deduction.
When you enter medical expenses in TurboTax, or any tax software, you enter the full unreimbursed amount. The 7.5% of AGI will be subtracted on Schedule A.
Some states have different rules for deducting medical expenses on the state tax return.
