It's showing my medical expenses as half the amount I entered in; includes Rx meds, copays/deductibles for Dr. visits, and out of pocket for massage therapy (have Rx for PT/massage therapy).
Only medical expenses in excess of 7.5% of your AGI are deductible, and only if you itemize. You can view your Medical Expenses worksheet to see all of your expenses, or view Schedule A to see the deductible amounts (over 7.5% of Adjusted gross income).
Example - For example, if your AGI happens to be $100,000, you can deduct the portion of your expenses exceeding 7.5% of your AGI ($7,500). If your total expenses for the year came in at $6,000, you wouldn't be able to deduct any of it, but if they were $10,000 you could deduct the portion over and beyond $7,500, which would be $2,500 – provided you're itemizing, of course.
Thank you for your timely response. So, when I calculate AGI = gross income - itemized deductions, would I want to include or exclude medical expenses from the itemized deductions? I ask b/c it sounds like I need to know the AGI before I can figure out how much of the medical expenses will be deductible.
Ex: With this in mind, which one is correct:
A. Total gross income is $60,000 and deductions (includes everything but medical expenses) are $10,000, then AGI would be $50,000.
B. Total gross income is $60,000 and deductions (includes everything as well as total medical expenses) are $15,000, AGI would be $45,000.
Thank you!
While Turbotax asks for medical expenses by categories, there;'s no need to detail them that way. all that's needed is one entry for all qualifying medical expenses excluding items entered elsewhere like medicare premiums, self-employment health insurance, Affordable Care Act coverage that must be entered in the appropriate place.
AGI (1040 line 11) is not affected by itemized deductions. $60K in gross income (1040 line 9)) would only be affected by Schedule 1 - additional income and adjustments to income. Line 10 increases AGI while line 26 decreases AGI. Thus if gross income was $60K and you had no adjustments to income, AGI would be $60K. 7.5% would be $4,500. If gross medical expenses were $10K, $5,500 would be included in itemized deductions.