@GeoffMather wrote:
I have the same question for tax year 2020. I have a large one time Membership payment that is for "Lifetime Care - Advance Payments" as defined in IRS Pub 502. I know this is unusual and perhaps I just can't use TurboTax this year. There is no question that covers this under Medical expense deductions. Can I somehow force entries into 1040 schedule A, overriding the system? This is NOT regular Long Term Care insurance. This is an advance payment in return for a contractual obligation to pay our medical expenses for life.
In your answer below, you have identified the right item, but your hint about the search function seems to just bring me back to the standard questions. What question can I used to input the amount I paid? It is not one of your usual items.
Enter medical expenses, sch a in the Search box located in the upper right of the program screen. Click on Jump to medical expenses, sch a
Continue through the screens for medical expenses until you land on Tell us about any other medical expenses. Enter a Description and an Amount for the medical portion of the Advance Payment.
That amount will be included as part of your total medical expenses paid with out of pocket funds in 2020 on Schedule A.
However, only your total medical expenses that are greater than 7.5% of your Adjusted Gross Income (AGI) can be deducted. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.
Standard deductions for 2020
- Single - $12,400 add $1,650 if age 65 or older
- Married Filing Separately - $12,400 add $1,300 if age 65 or older
- Married Filing Jointly - $24,800 add $1,300 for each spouse age 65 or older
- Head of Household - $18,650 add $1,650 if age 65 or older
