Multiple tax questions

[TMiya]

• How will the new legislation affect my taxes?
• Will the new laws change my refund?
• Are medical expenses deductible? 

[xmasbaby0]

No one can see your information.  We know nothing about you.   We cannot give you any specific information about how you personally will be affected by the new laws.  Try using the TaxCaster tool.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

https://www.kiplinger.com/taxes/tax-law/603037/tax-changes-and-key-amounts

MEDICAL EXPENSES

The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  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 2022—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

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[TMiya]

Regarding medical expenses, my inquiry specifically revolve around getting a new bed to address joint pain issues. I'm currently looking into a Sleep Number, which tend to run around $8,000.

Additionally, I plan to do a maximum contribution to my IRA. On that note, what is the maximum IRA contributions I am allowed for someone that will be 40?

[Critter-3]

Max IRA for a person under 50 = $6000

[xmasbaby0]

Did your doctor write a prescription for a new mattress?

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

https://ttlc.intuit.com/questions/2895189-what-kinds-of-medical-expenses-are-deductible

https://turbotax.intuit.com/tax-tips/health-care/deducting-medical-expenses-for-a-major-illness-or-i...

[TMiya]

No, I do not have a prescription for the bed yet as I have not spoken to my doctor about it yet. This option only became available due to a new job I recently started.

Additionally, I am in Washington state where there is no state income tax. I recall seeing an article about being able to deduct large ticket items for sales tax. If not covered under a medical expense write off, would the bed be covered under the state sales tax deduction? Also, for my understanding, is that sales tax deduction limited to what it covers or can any large ticket items be listed?

[VolvoGirl]

If you itemize your deductions you can either take the state and local SALES TAX deduction OR the state and local INCOME TAX deduction whichever is greater. There are a couple items like car sales tax you can add to the general sales tax table.  That is mainly for people who live in a state without a state income tax.

Turbo Tax FAQ on Sales Tax

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

See IRS Schedule A page A-6 third column line 7 on what items you can add to the sales tax table. http://www.irs.gov/pub/irs-pdf/i1040sca.pdf

You can only add

1.  A Motor Vehicle

2.  Aircraft or Boat

3.  A Home

Major purchases do NOT include:

-Furniture

-Jewelry

-Home electronics

-Appliances

[TMiya]

Ok, thank you for that clarity.

However, if I can get a prescription from my doctor, that would qualify the bed under medical expenses?