Medical expenses: Large bills make no difference whatsoever!

[juham2013]

We use the Desktop version of TT

Filing married-jointly (we were in 12% bracket, but got bumped up to the 22% category in 2025), I thought we would be able to reduce taxable income owing to very large medical bills. We can only deduct unreimbursed, qualified medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI). To claim this, we must itemize deductions on Schedule A (Form 1040), rather than taking the standard deduction.

I am using the Desktop version of TurboTax that supposedly helps figure out whether it makes sense to take standard deduction rather than itemized deduction.   In my case, TT tells me that it makes sense to take the standard deduction.  I am pretty sure that the total medical expenses exceed the 7.5% of our AGI so why does TT claim that the standard deduction is better in our case?

It is sad that one would truly need to go bankrupt (chemo-therapy, for instance or having heart surgery) to actually "benefit" from facing huge medical bills!

WHY bother keeping receipts from medical procedures, lab work etc., IF, for instance, $10,000.00 in medical bills doesn't make any difference?  Wasting precious time, striving to keep our ducks in a row! So, it is absolutely BEST to never fall ill as the standard deduction is there and will benefit married couples filing jointly just the same.  

JJ

[rjs]

Being "pretty sure" is not good enough. Look at the medical expenses section at the top of your Schedule A and see the actual amount of your deduction. TurboTax fills out Schedule A even if the standard deduction is better. Since you are using the TurboTax Desktop software, you can open Schedule A in forms mode even if it's not included in your tax return.

[juham2013]

Checked Schedule A and the the amount in excess of 7.5% of AGI is $2,834.00, but again, this doesn't make any difference to our tax (refund). Just for kicks, I played with the amount from medical bills and even $5,834.00 (obviously, I am not going to use this number but the true figure based on unreimburesed medical bills) in excess of the 7.5% makes absolutely no difference.  So, I guess the IRS deems our family (12% tax-bracket) "affluent" and it is better to work 2-3 jobs at minimum wage (and, I realize many many families are in that situation which is sad) and fall seriously ill.

[rjs · Accepted solution]

The decision to use the standard deduction is based on your total itemized deductions, not just medical expenses. Your medical expenses are not making any difference in your tax because your total itemized deductions are less than your standard deduction. For 2025 the standard deduction for married filing jointly is $31,500. If your deductible medical expenses are $2,834 you would need at least another $28,667 of other itemized deductions to exceed the standard deduction. Your total itemized deductions are on line 17 of Schedule A. If that's less than $31,500 you are better off taking the standard deduction, in spite of your medical expenses.

By taking the standard deduction, the IRS is letting you deduct more than your actual deductible expenses. That's a pretty good deal.

[edrosen]

I look at Schedule A - Filing single - Total itemized deductions are 77K - large medical bills - TurboTax STILL says I need to use Standard Deduction - I cannot override...

[DoninGA]

@edrosen So your Schedule A Line 17 is larger than the Standard Deduction for your Filing Status?

What is your filing status and what is the amount on line 17 of the Schedule A?

Are you using one of the TurboTax desktop editions installed on your personal computer?   If so, Windows or Mac?

[NCperson]

@juham2013 also, what is on Line 11 of form 1040 and Line 4 of Schedule A? 

even though you may have large medical bills,  the first 7.5% times Line 11 on form 1040, is not deductible.  It's only the portion exceeding that calculation that can be deducted.  You can see this on Lines 1-4 of Schedule A. 

Further, your state and local taxes cannot exceed $40,000.  And that is subject to a phase out at very high incomes.