I have medical expenses w/ Obamacare that exceed the 7.5% of my AGI, but the $7200 medical deduction is not applying to my tax return. What could be the cause?

[dwang2015]

I am using the TurboTax Deluxe CD.

[xmasbaby0 · Accepted solution]

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2017—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.

To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses

https://turbotax.intuit.com/tax-tips/health-care/medical-expenses-checklist/L6MkxxlyW

[dwang2015]

@xmasbaby0 Yes, all of the expenses were paid in 2017 and were greater than 7.5% of my AGI. That being said the application is showing that $7200 should be deducted from my tax return, but after clicking next it doesn't impact my return at all. I'm wondering if it could be a product issue?

[xmasbaby0]

Do all of your combined itemized deductions also exceed your standard deduction?
STANDARD DEDUCTION
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 2017
Your standard deduction lowers your taxable income.  It is not a refund 
2017 Standard Deductions
Single    $6350  (65 or older + $1550)
Married Filing Separately   $6350  (65 or older +  $1250)
Married Filing Jointly           $12,700  (65 or older + $1250@)
Head of Household $9350  (65 or older + $1550)

Look on line 40 of your Form 1040 to see your itemized deductions