Medical expenses

[kanderson910]

It shows a  $3,844 medical expense deduction based off of subtracting the $8,687 AGI-based expense limit for medical expenses from your $12,531 of total medical expenses.

Prior to entering those deductions, my refund was approximately $550, however when I entered the medical deductions, it did not increase my refund at all, how is that possible?

[xmasbaby0 · Accepted solution]

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, job-related expenses, casualty and theft losses, for example, must meet thresholds that are pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Here are the Standard Deductions for 2016

Your standard deduction lowers your taxable income.  It is not a refund 

2016 Standard Deductions

Single    $6300  (65 or older + $1550)

Married Filing Separately   $6300  (65 or older +  $1250)

Married Filing Jointly           $12,600  (65 or older + $1250@)

Head of Household $9300  (65 or older + $1550)