November 29, 2016

Deducting Medical and Dental Expenses

If you’re planning on deducting health care expenses on your federal taxes, you should know about the following rules: The amount of allowable medical expenses you must exceed before you can claim a deduction is 10% of your adjusted gross income (AGI), unless you or your spouse are age 65 or older. In this case, the AGI threshold is 7.5%. This exception will be valid through December 31, 2016. Beginning January 1, 2017, the threshold will be 10% for all taxpayers. You should also keep in mind that only expenses paid in 2016 are eligible for deductions on 2016 taxes. If you paid by check, you can consider the day you mailed or delivered the check to be the date of payment. You can only claim medical or dental expenses if you itemize deductions on your federal tax return. Tip courtesy of Mike Patton | Forbes.com