The IRS allows you to deduct
qualified medical expenses that exceed 10% of your adjusted gross income
for the year. If
you are age 65 or older then the AGI limit is 7.5%. Your adjusted
gross income (AGI) is
your taxable income minus any adjustments to income such as deductions,
contributions to a traditional IRA and student loan interest.
For example, if you have a
modified adjusted gross income of $45,000 and $5,475 of medical expenses, you
would multiply $45,000 by 0.10 (10 percent) to find that only expenses
exceeding $4,500 can be deducted. This leaves you with a medical expense deduction
of $975 (5,475 - 4,500).
To enter medical expenses:
- Go to Federal
Taxes.
- Click on
the Deductions and Credits tab.
- Scroll down
to Medical.
- Click Start next
to Medical Expenses
Your total
itemized deductions must be greater than your standard
deduction to have any tax benefit.
TurboTax will
deduct the greater of the standard deduction or itemized
deductions choosing the one that lowers your overall tax liability.
For further information on deducting medical expenses:
IRS: Topic 502 - Medical and Dental
Expenses
TurboTax article: Can
I Claim Medical Expenses on My Taxes?
