Medical Deductions - 7 1/2 % vs 10%


L

Luka

At some point earlier this year I heard a rumor that the threshold to
deduct medical expenses was going up. Does anyone have any further
info?
 
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R

removeps-groups

At some point earlier this year I heard a rumor that the threshold to
deduct medical expenses was going up.  Does anyone have any further
info?
Yes, part of the new health care act. Starting in 2013 only the
amount above 10% of your AGI will be deductible. Under AMT it is my
opinion that only the amount above 12.5% of your AGI is deductible
(currently only the amount above 10% of your AGI is deductible), as
2.5% of your AGI of medical expenses are not allowed under AMT.
However, if you are 65 or older, then you can still keep the 7.5%
limit until 2016 (and 10% for AGI).
 
R

rick++

At some point earlier this year I heard a rumor that the threshold to
deduct medical expenses was going up.  Does anyone have any further
info?
Other medical tax deductibility is decreasing too: FSA (work medical
accounts)
ceiling will be cut in half in 2013. So do that expensive dental work
or plastic
surgery in the next years then.
 
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R

removeps-groups

Other medical tax deductibility is decreasing too: FSA (work medical
accounts)
ceiling will be cut in half in 2013.  So do that expensive dental work
or plastic
surgery in the next years then.
And in 2011 you cannot use FSA to pay for OTC medicines. Maybe if you
have a doctors prescription for nutritional supplements for a specific
ailment then it is allowed; I haven't read the rules enough to say.
 

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