![]() 10 percent of your adjusted gross income is equal to $7,000 – think of this as your deduction threshold.In this case, you could deduct $1,000 in medical expenses. ![]() If your adjusted gross income (AGI) is $70,000, then your deduction threshold would be equal to $7,000. ”įinding Your Medical Expense Deduction ThresholdĪdjusted Gross Income ($) x 0.10 = Deduction Threshold ($)Įxample: Let’s say you spent $8,000 on medical expenses. “Any time you’re chronically ill,” says Flores, “it would add to the amount of time. You could generate all the bills you need to maximize this deduction “if you go for a big surgery one time,” says Alison Flores, principal tax research analyst at The Tax Institute at H&R Block. The amount of time it takes to determine the deduction will vary for each person. If your total medical expenses are greater than your medical expense deduction threshold, then you have qualified medical expense deductions. Think of this 10 percent as your medical expense deduction threshold. Your medical expense deduction will only begin to count after it surpasses 10 percent or more of your adjusted gross income (or “AGI” – this is your total pre-tax income before certain non-itemized deductions such as health savings account spending). If you decide to itemize your tax deductions, you’ll also need to have relatively high medical costs. However, you’ll have to file your taxes in a certain way – itemizing your deductions instead of choosing the standard deduction – to deduct your medical costs. ![]() There are so many deductible medical expenses that you’re almost certain to pick up a few medical expense deductions during the year. Search Now What Is a Medical Expense Deduction?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |