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posted Mar 14, 2021 5:01:19 PM

Medical Deductions

My AGI is $110,000, married filing joint.  Our medical expenses for 2020 were $22,000 which is more than 7.5% of AGI. However, medical deductions are not reducing my tax liability.  What gives?

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2 Replies
Level 15
Mar 14, 2021 5:07:20 PM

You can only use the medical expenses that you PAID in 2020, and only the amount above 7.5% of your AGI "counts."     So only the amount OVER $8250 counts.   That means $13,750 of itemized deductions for medical expenses.  Are you filing a joint return?   You need itemized deductions that exceed your standard deduction or it has no effect.   Did you also enter any mortgage interest, property tax, donations.....etc.?

 

2020 Standard Deduction Amounts

 

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

 

 

Level 15
Mar 14, 2021 5:08:21 PM

Do you have other deductions?  Are all your deductions more than the standard deduction?  Turbo Tax starts out by giving you the Standard Deduction so you won't see a change until your itemized deductions go over.

 

For 2020 the standard deduction amounts are:

Single 12,400 + 1,650 for 65 and over or blind (14,050)

HOH 18,650 + 1,650 for 65 and over or blind

Joint 24,800 + 1,300 for each 65 and over or blind

Married filing Separate 12,400 + 1,300 for 65 and over or blind

 

And if you take the Standard Deduction you can also deduct up to 300 for charity on 1040 line 10b.  So the Standard Deduction + 300 might be more than your deductions.