Why doesn't my refund change after I enter my medical expenses?
The Affordable Care Act made it a little harder for many people to get this deduction.
Starting with tax year 2013, you're only allowed to deduct medical expenses above and beyond 10% of your AGI (7.5% if you or your spouse is 65 or older). Before, taxpayers were able to deduct the amount above and beyond 7.5% of their AGI regardless of age.
For example, single filer Linda's AGI is $35,000 and she incurred $4,000 in medical expenses. She can deduct $500 of her medical costs ($4,000 minus 10% of her AGI) if she's under 65. If she were 65 or older, she could deduct $1,375 ($4,000 minus 7.5% of her AGI). Either way, she'll need to itemize to see the effect on her refund.