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I have almost $1000 over the minimum for medical expenses to be listed.. I listed them all and my refund did not budge.. what was the point?

 
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I have almost $1000 over the minimum for medical expenses to be listed.. I listed them all and my refund did not budge.. what was the point?

Only if all itemized deductions exceed the standard deduction will it be of benefit.

For 2016 the standard deductions are:

Single or filing Married Filing Separately - $6,300
Married Filing Jointly or Qualifying Widow(er) - $12,600
Head of Household - $9,300

(If over 65 or blind add $1,250 - $1,550 if filing single or HOH)

Not all itemized deductions count the full amount. Medical expenses are reduced by 10% of AGI (7.5% if over age 65) so if your AGI is $30,000, for example, then only medical expenses more than $3,000 would be an itemized deduction.

Likewise for miscellaneous deductions such as union dues, work related expenses, etc. are first reduced by 2% of AGI.

For example, If your AGI is $30,000 then 2% is $600 so if your job related expenses were $650, then only $50 would become an itemized deduction.

Also Itemized deductions start to phase out if AGI exceeds $155,650.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

I have almost $1000 over the minimum for medical expenses to be listed.. I listed them all and my refund did not budge.. what was the point?

lets say the W-2 (only income) was, let's say 28k individual is under 65, and the medical expenses were 3,700, why is there not refund adjustment?  Why is there a minimum base requirement if the minimum when applied does not receive a deduction?  That seems silly.

I have almost $1000 over the minimum for medical expenses to be listed.. I listed them all and my refund did not budge.. what was the point?

Why?  Because that is how Congress crated the law.  With $28K, 10% is $2,800.  $3,700 - $2,800 = $900.   You would need another $5,400 of itemized deductions before it would make a difference.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

I have almost $1000 over the minimum for medical expenses to be listed.. I listed them all and my refund did not budge.. what was the point?

So, to be more practical and time saving, it should probably say "If not entering any other deductions and the total is under 6,300, DO NOT WASTE YOUR TIME!"?

I have almost $1000 over the minimum for medical expenses to be listed.. I listed them all and my refund did not budge.. what was the point?

TurboTax has no way to know what deductions you have until you enter them.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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