Celiac deduction limit & How to report?

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For the medical deduction, is the deduction only claimable if it exceeds some other amount ( like a percent of AGI) and is there a way to forecast an average or typical Celiac annual/monthly expenses to find out if it's worth it to track at all?

For instance of the amount you spend needs to be a very high amount and you don't have a low AGI, some tedious deductions aren't worth the trouble of tracking in the first place.

If you did qualify to claim the medical deduction, would you need to fill out another form that has a fee with itemized?

Thanks!

Ask the Experts - Refund - April 2023

HelenC12

Alumni - Intuit

Yes, the deduction value for medical expenses varies because the amount changes based on your income. In 2022, the IRS allows all taxpayers to deduct their total qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income if the taxpayer uses IRS Schedule A to itemize their deductions.

As for a fee: If you itemize your deductions and use TurboTax Online, you'll have to use the Deluxe version or higher. The Deluxe version has a cost versus the Free version.

Your adjusted gross income (AGI) is your total income subject to tax from your tax return minus any adjustments to income, such as contributions to a traditional IRA and deductible student loan interest.

For example, if you have an AGI of $45,000 and $5,475 of medical expenses, you would multiply $45,000 by 0.075 (7.5%) to find that only expenses exceeding $3,375 can be included as an itemized deduction. This leaves you with a medical expense deduction of $2,100 ($5,475 minus $3,375). This amount can be included on your Schedule A, Itemized Deductions.

To get a tax benefit from your ,medical expense, the sum of all your itemized deductions, which also includes things like donations, mortgage, and property taxes, must exceed your standard deduction amount.

As for doing a forecast, there's no simple method. However, when you prepare your 2022 income tax return, you could itemize your deductions. If your itemized deductions are greater than your standard deduction and you don't expect too much change in your tax situation for 2023, then chances are you may be able to deduct your medical expenses.

To enter your medical expenses, click here.

[Edited 04-06-2023|1:41 PM PST]

@Pocketchangecc

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