TurboTax FAQ
TurboTax FAQ
173 people found this useful

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.

Also, you need to itemize to get the medical expense deduction. Until the sum of all your itemizable deductions exceeds your standard deduction amount, your refund won't change.

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.

Related Information: