Solved: Why are my medical expenses not impacting my deduction when they are over 10% of my income?
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New Member

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

I was on the phone with someone who was not able to answer my questions and I need help. It is saying that because they do not add up to the standard $6350, it does not count. It is close though and over 10% of my income so idk what to do.
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Level 15

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

Example:  AGI = $50,000

7.5% of AGI = $3,750

Medical Expenses  = $6,500

Amount in Excess = $6,500 - 3,750 = $2,750 which is less than the Standard Deduction.

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Level 15

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

Only the amount of your medical expenses that is greater than 7.5% of your AGI can be deducted on Schedule A as an itemized deduction (not 10%).  Then your total itemized deductions must be greater than the standard deduction for your filing status to have any tax benefit.
How much is your AGI and how much are your medical expenses?
To view your 2017 AGI - Click on Tax Tools on the left side of the screen.  Click on Tools.  Click on View Tax Summary.
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Level 15

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

Example:  AGI = $50,000

7.5% of AGI = $3,750

Medical Expenses  = $6,500

Amount in Excess = $6,500 - 3,750 = $2,750 which is less than the Standard Deduction.

View solution in original post

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New Member

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

Okay I think I am getting it so it is not the actual medical expenses that we are looking at but the amount in excess right? So the Standard Deduction does not seem very standard. It seems like you would need to be drowning in medical expenses to get any deductions from it.
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New Member

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

Can someone confirm this please? I need to file my taxes today and I want to make sure that the amount in excess matters and not the actual expenses.
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Level 15

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

See IRS Schedule A page A-1 Medical and Dental Expenses - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1040sca.pdf">https://www.irs.gov/pub/irs-pdf/i1040sca.pdf</a>
"You can deduct only the part of your medical and dental expenses that exceeds 7.5% of the amount of your adjusted
gross income on Form 1040, line 38."
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New Member

Why are my medical expenses not impacting my deduction when they are over 10% of my income?

Thank you!
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