If you are 65 or over, have a lot of medical & dental expenses and itemize, then 2016 could be your last best chance to take tax advantage of the lower 7.5% threshold. Starting in 2017, the 10% threshold will apply to every taxpayer regardless of age.
The total medical expenses (after reflecting all reimbursements) are deductible only to the extent they exceed 10% of adjusted gross income (AGI); however, for 2016 returns, taxpayers age 65 or older still can claim medical and dental expenses on Schedule A that exceed 7.5% of AGI.
If you’re married, this tax advantage still applies as long as one spouse is 65 or older this year. The medical expense must be paid in 2016 and must be in treatment of a specific disease or illness. Note that payment by credit card is payment when charged.
Start planning deductible medical procedures now and make sure to count often overlooked expenses, such as travel to treatments or even to pick up prescriptions at your pharmacy.
I created this blog to help understand certain basic aspects of U.S. tax law. Of course, each situation is unique and nothing that is on this site will ever replace the expert advice of a tax professional.
Please do not hesitate to contact me should you have any question