TurboTax not deducting medical expenses

[patriciahake]

Why won't TurboTax deduct medical expenses and premiums when then exceed the 7.5% standard deduction.  My year was virtually the same as last year when I was able to claim the itemized deductions.  This year expenses are well over the 7.5% but TurboTax is only me offering the standard deduction.  What am I doing wrong?

[xmasbaby0]

There is more than one threshold to meet.    For medical expenses, only the amount that is over 7.5% of your AGI counts as an itemized deduction on Schedule A.  But the medical expenses are used with any other itemized deductions you enter like mortgage interest, property tax, charity donations....and if the total of your itemized deductions on Schedule A does not exceed your standard deduction, the medical expenses have no effect on your refund or tax due.

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, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   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.  Under the tax laws that have been in effect since 2018, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY            $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

[patriciahake]

Thank you for the info.  I think I explained it incorrectly.  My standard deduction is $2057 but my medical expenses are over $11,000.  However, Turbotax is only giving me the standard.  I show everything entered in correctly.  I compared it to last year.  I'm clueless.  Any help is appreciated.

[xmasbaby0]

Are you being claimed as someone else's dependent?    That is the only explanation I can think of for your standard deduction to be that low.   If you are someone else's dependent, then the person who claims you as a dependent can enter your medical expenses on their return if they are itemizing.

[patriciahake]

No.  I'm retired and only receive social security.

[xmasbaby0]

And.....if you are someone else's dependent and have less income than the federal standard deduction of $14,600 for a filing status of single, you would be getting back all of the tax withheld in box 2 of your W-2 anyway, so entering itemized deductions does not affect your refund.

[xmasbaby0]

Okay---we must both be typing at the same time.   If your only income was Social Security, you are not required to file a tax return unless you have a 1095A for marketplace health insurance.   Or ....if you had any tax withheld from your SS benefits you can get a refund of the tax withheld.  But entering medical expenses will not increase your refund beyond any tax that was withheld from your SS.

[patriciahake]

Thank you so much for your help and prompt replies!