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Level 3
posted Jun 4, 2019 12:21:08 PM

Can medical or all deductions get so high that the refund meter stops increasing? (I'm not using Standard Deduct; MFJ)

I just now subtracted $8000 randomly from $42,000 med expenses, and taxes refunded amount didn't drop.  So I guess there IS a ceiling, based on total income??

Ever since my refund dropped due to ACA subsidy I have to repay, it seems to have locked the refund at one small amount.

What's the deal???

0 3 350
1 Best answer
Level 15
Jun 4, 2019 12:21:10 PM

It is possible to get back all of the amount withheld and have no further refund if you have a lot of itemized deductions.  It is also possible that your income could be high enough for itemized deductions to phase out.

Do you understand how the medical deduction works?The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical expenses that will count toward itemization for someone under 65 is the amount that is OVER 10% of your adjusted gross income; for someone 65 or older it would be the amount over 7.5% of your AGI.  

You should only enter the amount that you paid in 2016—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


3 Replies
Level 15
Jun 4, 2019 12:21:10 PM

It is possible to get back all of the amount withheld and have no further refund if you have a lot of itemized deductions.  It is also possible that your income could be high enough for itemized deductions to phase out.

Do you understand how the medical deduction works?The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical expenses that will count toward itemization for someone under 65 is the amount that is OVER 10% of your adjusted gross income; for someone 65 or older it would be the amount over 7.5% of your AGI.  

You should only enter the amount that you paid in 2016—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


Level 3
Jun 4, 2019 12:21:11 PM

You've been a great help to me several times.  Just want you to know how much you are appreciated. Many thanks!

Level 15
Jun 4, 2019 12:21:13 PM

Really?  Thank you for saying that, and you are most welcome.