ThomasM125
Expert Alumni

Retirement tax questions

You mention that you receive a tax fee disability pension which I assume is separate from the $3,000 medical deduction that you are concerned about. Most health care costs are allowable as itemized deductions. To be of benefit to you, the total of your medical expenses have to be over 7.5% of your adjusted gross income and the total of your itemized deductions have to be greater than your standard deductions to benefit you. You would enter them in the Deductions and Credits section of TurboTax, under the Medical section, and then Medical Expenses.

 

If you mean that the $3,000 deduction is to be used to offset your pension income dollar for dollar, this would not be allowed if your pension income is not taxable. You can't report negative pension income because a medical deduction reduced your taxable benefits below zero.

 

 

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