Author Topic: Medical deductions on tax return  (Read 1082 times)

trailrated

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Medical deductions on tax return
« on: January 04, 2015, 01:03:33 PM »
Does anyone have any experience with this? This is the first year I have actually spent a significant amount (roughly $7,000) on medical. I saved all the receipts from everything. How much does that lower my tax liability? Is it a certain percentage, not sure how it all works. Thanks!

Abe

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Re: Medical deductions on tax return
« Reply #1 on: January 04, 2015, 01:49:26 PM »
You may deduct the expenses if the total is more than 10% of your adjusted gross income. Assuming that is the case, then your taxable income will be decreased by $7000. If the total is less than 10%, you cannot deduct any of it.


http://www.irs.gov/taxtopics/tc502.html

savedough

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Re: Medical deductions on tax return
« Reply #2 on: January 04, 2015, 02:33:20 PM »
You can actually only deduct the portion that exceeds 10% based on my understanding.   So if you make $50K, you can only deduct $2K if you spend $7K

catccc

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Re: Medical deductions on tax return
« Reply #3 on: January 04, 2015, 03:22:08 PM »
Yes, it is only the amount that exceeds 10% of your AGI.  Also, you need to take itemized deductions to take the medical deduction.  It will reduce your taxable income the same way a dollar of other itemized or standard deductions would.

LadyStache

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Re: Medical deductions on tax return
« Reply #4 on: January 04, 2015, 03:24:45 PM »
I think you can also deduct mileage expenses for medical, so you may want to add that up, too.